Kioxia Profit Surges 31-Fold on AI Chip Boom; Stock Split Announced

Kioxia Holdings reported record quarterly profits on July 31 as artificial intelligence investment turbocharged demand for memory chips. Net profit in the April-June quarter reached 842.2 billion yen, up 46-fold from 18.3 billion yen a year earlier. The company projects first-half net profit of 2.1 trillion yen, a 31-fold jump, and announced a 3-for-1 stock split and 800 billion yen buyback program.

Q1 results crush forecasts despite revenue miss

Kioxia posted revenue of 1.77 trillion yen in the April-June quarter, up 415% year-on-year but slightly below analyst expectations of 1.84 trillion yen. Operating profit reached 1.27 trillion yen, up 2,700% from 47 billion yen in Q1 fiscal 2025. Net profit of 842.2 billion yen exceeded the prior year’s entire fiscal profit of 554.5 billion yen in a single quarter. The earnings surge reflects strong artificial intelligence-driven demand for memory chips used in data centers.

H1 guidance signals continued momentum despite market caution

For the six-month period ending September 30, Kioxia projects net profit of 2.1 trillion yen, implying Q2 net profit of 1.27 trillion yen. Operating profit guidance for Q2 stands at 1.89 trillion yen, slightly below the Bloomberg consensus of 1.95 trillion yen. Revenue is expected to reach 2.39 trillion yen in Q2. CFO Yoshihiko Kawamura stated that growth is accelerating on the back of AI demand, with adoption expanding for agentic AI systems that require additional storage capacity.

Stock split and buyback signal management confidence

Kioxia announced a 3-for-1 stock split effective October 1, 2026, aimed at broadening its investor base. The company also launched a share repurchase program of up to 800 billion yen. The equity ratio strengthened to 50.8% from 37.9%, significantly derisking the balance sheet. These capital allocation moves come as the stock has lost more than half its value in July despite climbing nearly 1,500% over the past year.

NAND supply tightness expected to persist through 2027

Kioxia expects NAND flash prices to continue rising in Q2 as supply remains tight. The company cited sustained demand from cloud computing providers expanding AI data centers and strong enterprise SSD sales. TrendForce data shows a 4-5% NAND supply deficit forecast for 2026, maintaining a shortage through 2027. However, Samsung and SK Hynix are also expanding capacity, with supply potentially outpacing demand in the second half of 2027.

Final Thoughts

Kioxia’s record profits confirm the NAND supercycle is real, but the stock’s 50% July plunge shows investors fear peak earnings. The 3-for-1 split and 800 billion yen buyback suggest management sees value at current levels.

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