Kioxia shares rise as much as 12%, most since Aug 12

Kioxia shares rise as much as 12%, most since Aug 12

Kioxia shares (TSE: 6981) surged as much as 12% on September 2, 2025, marking the most significant gain since August 12. The stock's rally can be attributed to several factors, including the growing demand for NAND flash memory and enterprise SSDs, as well as the company's strategic partnerships and technological advancements.

The demand for NAND flash memory has been bolstered by the increasing adoption of artificial intelligence (AI) and the expansion of data centers. Hyperscalers and cloud providers are ramping up their infrastructure to handle AI workloads, leading to a surge in demand for larger and faster storage solutions. Kioxia's position as a leading supplier in this market has positioned it to benefit from this trend.

In addition to the growing demand, Kioxia's strategic partnerships have also contributed to its stock price increase. The company's manufacturing partnership with SanDisk (NASDAQ: SNDK) provides it with better control over the supply chain and enhances its competitive advantage. This vertical integration allows Kioxia to maintain steadier margins and better pricing power compared to its rivals.

Furthermore, Kioxia's technological advancements, such as its UltraQLC technology, are helping it keep up with the exploding storage needs. This next-gen flash tech enables the company to offer faster and more efficient storage solutions, further boosting its appeal to customers in the data center and AI sectors.

Despite these positive developments, there are some risks to consider. Supply chain disruptions and increased competition in the semiconductor industry could pose challenges to Kioxia's growth. However, given the company's strong balance sheet and track record, analysts view these risks as manageable.

The forward P/E ratio of Kioxia is around 8.9, which is relatively low compared to the semiconductor space. This valuation makes the stock an attractive investment opportunity for those looking to capitalize on the growing demand for NAND flash memory and enterprise SSDs.

References:
[1] https://cryptorank.io/news/feed/4b1a7-sandisk-stock-surges-14-today-heres-why-analysts-are-raising-price-targets