The shares of the Japanese chipmaker plunged Tuesday after it signaled that the rapid price gains of its storage products are beginning to level off. Kioxia’s stock fell 14% following a financial outlook for the October-December quarter that projected operating profit of $12.7B, missing analyst estimates of $14.9B. The NAND flash memory maker cited a stronger yen as a headwind and warned that the period of explosive pricing growth driven by generative AI demand is slowing.
The cautious guide follows a strong second quarter where Kioxia’s operating profit grew roughly 22 times year over year to $12.68B, aided by average selling prices for NAND rising mid-20% over the previous three months. Despite the forecast miss, Kioxia said its entire production capacity for 2027 is already sold out and announced a first-ever interim dividend of ¥90 per share under a new policy to return 100% of surplus cash to shareholders.
