Kioxia Net Profit Surges 45-Fold on AI Demand

Kioxia reported a 45-fold increase in quarterly net profit for the April-June period, reaching 842.2 billion yen ($5.3 billion) compared to 18.3 billion yen in the previous year. Operating profit rose approximately 2,700% to 1.3 trillion yen, although both figures fell short of analyst estimates from a Bloomberg survey.

The growth stems from rising demand for NAND flash chips, as AI agents and artificial intelligence data centers require expanded storage capacities. Similar AI-driven profit increases were reported by South Korean competitors Samsung Electronics and SK Hynix.

Despite the financial surge, Kioxia shares have lost more than half their value over the past month, though they remain up nearly 1,500% over the last year. The Japanese chipmaker, formerly known as Toshiba Memory, announced plans to list its shares on the U.S. stock market.