Kioxia Holdings' stock price fell 41% over 5 trading days. The decline is believed to have been driven by the sale of a large block of shares by a Toshiba-affiliated entity.
Kioxia's stock price fell 41% over 5 trading days. In the market, concerns about the company's future earnings outlook and external factors, rather than weak demand, are weighing on the stock.
U.S.-based SanDisk, which jointly operates a factory with Kioxia, announced earnings on 29 October that included a forecast for revenue growth of more than 10% in the next quarter, but its stock price fell 13.5% on 30 October.
Kioxia forecasts revenue of ¥2.5 trillion and operating profit of ¥1.995 trillion for the October-December quarter, while operating profit growth is expected to slow from the April-June quarter to the July-September quarter. The company expects to be affected by foreign exchange movements, while some view continued strong demand for data centers as an ongoing source of support.
The market is becoming increasingly concerned about the outlook for memory stocks as a whole and is expected to continue watching Kioxia's share price.