Shares of Kioxia Holdings Corp. It has fallen 65% from its peak in June. The drop adds to speculation that the Japanese memory chip maker will accelerate dividend payouts and share buybacks.
The selloff has wiped about $245 billion from the market value since Kioxia went up on June 22. The stock was briefly ranked as Japan’s most important company before the slide began.
From Boom to Bust
Kioxia listed on the Tokyo Stock Exchange in December 2024 and growing rapidly until 2025, when the data center rushed to secure NAND flash memory for AI buildout. Shares rose more than 500% that year alone. The rally continued into 2026 as solid memory pushed Kioxia’s profits even further.
By June 22, a the goods went up a lot about ¥112,700. Kioxia’s huge market share briefly surpassed Toyota Motor, making it Japan’s most important company.
A big sell-off in AI-related stocks spread across global markets in July. Marketers have been wary of crowdfunding and slow growth in AI marketing. Chinese NAND makers have also raised volumes, fueling fears that Kioxia’s price tag will not last.
The stock fell alongside fellow South Koreans SK Hynix and Samsung. Both posted double-digit declines the same week Kioxia’s strategy grew.
Buybacks Can Signal Confidence
Experts say the decline now puts shares at a level where returns are easier to justify. The move will work in conjunction with the management’s shareholding that was revealed at their June investor day.
Kioxia he said in May that profits remain ahead. However, management left open the possibility of flexible responses, including acquisitions, depending on the situation. A company spokesperson said Kioxia continues to evaluate acquisitions but has not made a firm decision.
Ikuo Mitsui, a fund manager at Aizawa Securities, said the reason for the repurchase may be as important as the change.
“Refunding can send a signal that management views the stock as oversold.”
-Ikuo Mitsui, Bloomberg
Kioxia’s investment also provides opportunities for action. SK Kim, an analyst at Daiwa Securities Capital Markets Korea, said of the long-term cooperation and the stable demand for the data center. All these factors contribute to the free flow of money, he said.
Kim added that strong shareholder returns could be a real catalyst, which could attract investors as well as investors and hedge funds already in the stock.
The slide follows a broader trend linked to fears of an AI trade selloff, which also triggered Loss of Kioxia stock 45%. last month. Increased competition from Chinese rivals has added to the pressure. The same force has struck SK Hynix and Samsung in South Korea.
Kioxia reports first quarter results on Friday. Investors will look for clarity during distribution. They also want to know if the purchase moves from a possibility to an acceptable plan.
A note Kioxia May Plan Shares and Buybacks After Stock Drops 65%. appeared for the first time BeInCrypto.
