AI memory demand propels Kioxia to world’s best-performing stock

TOKYO – Artificial intelligence’s (AI) insatiable appetite for data storage has delivered Japanese memory chipmaker Kioxia Holdings world-beating stock gains in 2025, a sign that the AI boom is alive and well despite recent market jitters.

Kioxia’s shares have risen around 540 per cent in the year to date, outperforming all other members of the MSCI World Index and making it the top stock in Japan’s Topix benchmark for 2025.

The Nand flash memory maker, which debuted on the Tokyo Stock Exchange only in December 2024, counts Apple and Microsoft among its clients and is now worth about 5.7 trillion yen (S$46.9 billion).

Kioxia’s stratospheric climb illustrates the tech industry’s booming demand for memory as hyperscalers rush to build up AI infrastructure. Chips like Kioxia’s are essential for AI training and data centres. In 2025, major tech firms warned of a memory supply crunch amid soaring demand, with analysts forecasting a jump in prices. 

The memory rush has been a boon for Kioxia shares, as investors anticipate solid demand and rising prices will boost its revenue.

“In tech, we go into 2026 mainly geared to memory, whether that’s direct exposure to Kioxia or second derivative plays,” said Mr Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors.

Chip wafer makers like Sumco also stand to benefit from strong memory demand next year, he said.

Still, the stock’s performance has raised some concerns about overvaluation that have also weighed on other AI-related shares in recent months. Kioxia dropped 23 per cent in a day after its quarterly earnings undershot investors’ lofty expectations in November.

With memory demand still far outstripping supply, however, Kioxia looks well-placed to weather AI market jitters in 2026, said Mr Anvarzadeh.

“Worries about a data centre investment slowdown shouldn’t really affect memory prices for the next term, as the market is already heavily undersupplied,” he said. BLOOMBERG