Key facts
- Kioxia shares dropped 12% on Friday.
- The selloff was linked to reports of OpenAI considering a delayed IPO.
- OpenAI CEO Sam Altman is reportedly seeking a $1 trillion valuation for the company.
- Kioxia is considering a stock split and plans to list American depositary shares on a U.S. exchange.
- The U.S. listing is anticipated around the start of the financial year ending March 2028.
Shares of Japanese chipmaker Kioxia plummeted 12% on Friday, dragged down by a broader market selloff in artificial intelligence-related stocks. The decline was reportedly triggered by a New York Times report indicating that OpenAI, the creator of ChatGPT, is considering delaying its initial public offering until next year as CEO Sam Altman aims for a $1 trillion valuation.
Kioxia, a significant producer of memory chips, has seen its stock surge previously due to increased investment in the AI sector. The company was previously known as Toshiba Memory before being spun off from Toshiba in 2018. It currently holds the position of the most valuable company on the Nikkei 225 index.
In separate news, Kioxia announced on Thursday its consideration of a stock split. The company also stated its intention to list American depositary shares on a U.S. exchange, tentatively planned for the beginning of the financial year that concludes in March 2028. Chief Financial Officer Yoshihiko Kawamura indicated that the exact timing, whether April, May, or June, is not yet finalized but expressed hope for a listing around that period.
This move aligns with a trend of Asian tech firms seeking to broaden their investor base in the United States. Notably, chipmaker SK Hynix recently announced plans to raise up to $29.4 billion through a U.S. listing.
Analyst Douglas Kim commented on Kioxia's U.S. listing timeframe, suggesting it indicates high confidence in the company's ability to maintain strong performance over the next 9 to 12 months.