Kioxia Holdings’ share price has fallen 63% from its June high. Outstanding margin purchases stood at approximately ¥920 billion as of the 15th, and concerns are growing about selling pressure as repayment deadlines are expected to be concentrated at year-end.
Shares of semiconductor major Kioxia Holdings have fallen 63% from their all-time high since listing, while outstanding long positions in margin trading have reached approximately ¥920 billion, the largest among Tokyo Stock Exchange-listed stocks. Expectations are growing that repayment deadlines for investors who bought at elevated levels will be concentrated at year-end, heightening concerns about supply and demand. Trading value on the 16th was approximately ¥766 billion, down 84% from the peak.
According to market participants’ analysis, short-term investors have shown limited appetite for further buying, while reduced participation by hedge funds and individual day traders has contributed to the decline in trading volume. The extreme expansion in outstanding margin purchases has been cited as a factor behind the downside risk, and some market participants believe additional selling pressure could emerge as repayment deadlines approach.
On the earnings front, however, net income for the current fiscal year is expected to reach approximately ¥5.6 trillion, driven by rising prices for NAND flash memory, roughly 10 times the previous fiscal year’s level. The forward price-to-earnings ratio is expected to remain low at 3.2x over the next 12 months, below that of rival SanDisk.
Japan Exchange Group has indicated a policy of raising TOPIX inclusion weights from this month, which could increase Kioxia’s impact on the broader market through the index. Market participants are watching individual investors’ selling activity and changes in supply and demand toward year-end.