AI Memory Demand Propels Kioxia to World’s Best-Performing Stock
AI’s insatiable appetite for data storage has led to world-record-breaking stock gains this year for Japanese memory chip maker Kioxia Holdings Corp.; This is a sign that the AI boom is alive and well, despite recent market volatility.
Kioxia’s shares are up nearly 540% year-to-date, outperforming every other member of the MSCI World Index and making it the top-ranked stock on Japan’s Topix benchmark for 2025. The NAND flash memory maker, which debuted on the Tokyo Stock Exchange only last December, counts Apple Inc. among its customers. and Microsoft Corp., and is currently worth about ¥5.7 trillion.
Kioxia’s stratospheric climb demonstrates the tech industry’s growing demand for memory as hyperscalers scramble to build AI infrastructure. Chips like Kioxia’s are essential for AI training and data centers. This year, while major technology companies are warning that there may be a problem in memory supply due to increasing demand, analysts are predicting an increase in prices.
The memory boom has been a boon for Kioxia shares as investors predict strong demand and rising prices will boost revenues. “In technology, we’re going into 2026 heavily focused on memory, whether it’s direct exposure to Kioxia or second derivative plays,” said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors Pte. Sumco Corp. He said chip wafer manufacturers such as will also benefit from strong memory demand next year.
Still, the stock’s performance has raised some concerns about overvaluation, which has also weighed on other AI-related stocks in recent months. Kioxia fell 23% in one day after quarterly earnings fell short of investors’ high expectations in November.
Anvarzadeh said Kioxia looks well positioned to weather AI market fluctuations in 2026, although memory demand still far exceeds supply. “Concerns about a slowdown in data center investment shouldn’t really impact memory prices for the next period as the market is already fairly undersupplied,” he said.
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