Key facts
- Kioxia Holdings forecasts a 31-fold increase in quarterly net profit.
- The company expects net profit for the April-June quarter to exceed 869 billion yen ($5.7 billion).
- Demand for NAND flash memory chips is rising due to AI data center expansion.
- Kioxia reported a record net profit of 554.49 billion yen for the fiscal year ended March.
- Full-year earnings guidance was withheld due to concerns over market volatility and geopolitical risks.
Kioxia Holdings, a major producer of NAND flash memory chips, has forecast a substantial 31-fold increase in its quarterly net profit, primarily driven by robust demand from U.S. tech companies expanding their AI data center capacities. The company expects its net profit for the April-June quarter to surge more than 47-fold year-on-year to 869 billion yen ($5.7 billion).
For the fiscal year ended March, Kioxia reported a record net profit exceeding 554.49 billion yen, more than doubling from the previous year, with operating profit reaching 870.37 billion yen on sales of 2.34 trillion yen. The company projected operating profit of 1.30 trillion yen on sales of 1.75 trillion yen for the current April-June quarter.
Despite the strong profit outlook, Kioxia has withheld full-year earnings guidance, citing concerns about potential market volatility stemming from geopolitical risks, including the conflict in the Middle East. The company's share price has reportedly fallen amid worries that major tech firms might be overinvesting in data center infrastructure. The forecast assumes an exchange rate of 159 yen to the U.S. dollar.