A major Japanese manufacturer of memory chips announced Friday that it projects quarterly operating profits will reach 1.3 trillion yen ($8.20 billion) for the April through June period, as artificial intelligence applications drive unprecedented demand for semiconductor products.
Kioxia, which produces NAND flash memory chips, disclosed that its operating profits climbed 92.7% to 870.4 billion yen during the fiscal year that concluded in March, surpassing analyst projections.
The company revealed plans to offer American depositary shares on a United States stock exchange as part of efforts to expand its pool of investors.
Kioxia’s stock value has increased more than four times this year, pushing the company’s market value above major corporations including Sony and Fast Retailing, which owns the Uniqlo brand.
Other Asian semiconductor companies have also seen dramatic value increases, with South Korean manufacturer Samsung Electronics achieving a market valuation exceeding $1 trillion, while SK Hynix approaches the same benchmark.
The memory chip producer has navigated significant corporate changes in recent years, including its separation from scandal-plagued Toshiba through an acquisition led by Bain Capital, followed by its public listing in Tokyo during late 2024.
Companies in the memory chip sector typically require substantial capital investments and face exposure to unpredictable pricing fluctuations in the market.
