Kioxia Holdings’ stock price fell by approximately 70% in one month. Against the backdrop of a breakdown in supply and demand for AI-related NAND, the market focused on the massive investment plans of Samsung Electronics and SK hynix, with the outlook for the market discussed in earnings announcements at the end of July.
Around the earnings announcements at the end of July, the large-scale investments by South Korea’s Samsung Electronics and SK hynix were cited as factors that had a significant impact on Kioxia’s NAND market. Some observers said that changes in demand for AI-related materials had triggered the stock’s sharp decline. The investment trends of Samsung and SK were said to have affected the supply-demand balance and price movements upstream in the supply chain, and were viewed as a source of uncertainty for the market.
At the end of July, Samsung Electronics, SK hynix and Kioxia issued their earnings announcements on consecutive days, making each company’s outlook a focus of market attention. The earnings trends of hyperscalers, the background to Samsung and SK’s increased production investment, and developments in the US and Chinese semiconductor markets were said to have affected the outlook for a recovery in Kioxia’s stock price following its sharp decline. Earnings at cloud giants such as Amazon were viewed as a factor that partly dispelled market concerns, and the market showed signs of bottoming out at the end of the month.
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