Kioxia's market capitalization has dropped to one-third of its peak value recorded four months ago. The company's valuation fell from approximately ¥60 trillion ($380 billion) in June to ¥21 trillion ($133 billion) as of October 2026.
On October 15, Kioxia shares declined by 14% on the Tokyo Stock Exchange. This downturn follows broader market concerns regarding the creditworthiness of cloud provider CoreWeave and the sustainability of debt-funded data center expansion.
Competitive pressure from Chinese manufacturers is intensifying. While CXMT plans to release new products by the end of the year, the expansion of NAND flash production by YMTC is viewed by investors as a direct threat to established market players.
Despite the stock decline, Kioxia's projected net profit for the full fiscal year is expected to reach ¥5.54 trillion ($35 billion), a tenfold increase. The company is currently seeking to reduce market volatility dependence through a partnership with Nvidia.
