Kioxia Shares Drop 15% on Cautious Profit Outlook

Kioxia Holdings Corp. shares dropped as much as 15% on Monday following a cautious financial outlook that sparked investor concerns over a potential slowdown in artificial intelligence-driven demand.

The Tokyo-based memory maker projected an operating profit of ¥2 trillion ($12.7 billion) for the December quarter. This figure missed the analyst consensus estimate of ¥2.35 trillion and indicates minimal growth compared to the ¥1.99 trillion operating profit recorded in the September quarter.

This forecast marks a departure from the steep profit increases the company experienced over previous quarters, leading to the sharp decline in stock value.