Kioxia Holdings and Advantest have been highlighted as Japanese stocks to watch in the AI and semiconductor sectors. Their share prices have been highly volatile, but both companies are expected to maintain strong earnings growth.
Kioxia Holdings and Advantest have been highlighted as 2 Japanese stocks among the AI and semiconductor stocks attracting global attention. The share-price data is presented as of 3 August.
Kioxia Holdings is one of the world's largest dedicated NAND flash memory manufacturers, and is benefiting from rising demand for SSDs for AI data centers and higher unit prices. Operating profit for the previous fiscal year rose approximately 92.7% year on year to ¥870.4 billion.
Advantest is benefiting from expanding testing demand as AI semiconductors become more sophisticated and complex, with its global market shares in SoC testers and memory testers increasing. According to an assessment by Naito Securities, the company has developed and popularized the V93000 acquired through an acquisition, and the product is now widely adopted at semiconductor factories.
AI semiconductors are expected to remain the main growth driver this fiscal year, and Advantest is expected to post record profit, according to one view. The exchange-rate assumption is ¥150 to the US dollar, and some observers have noted that yen depreciation could have a positive impact on earnings.