Key facts
- Kioxia's shares have surged 456% this year, leading gains on the Nikkei 225 index.
- Voya Investments' Global Artificial Intelligence fund has $14 billion in assets.
- Sebastian Thomas, lead manager of Voya's AI fund, believes a U.S. listing would improve Kioxia's liquidity.
- Thomas cited South Korea's SK Hynix as an example of a company that benefited from a Nasdaq listing.
- Voya's fund invests in AI infrastructure companies like Nvidia and AI application makers.
A potential U.S. listing for Japanese chipmaker Kioxia could significantly enhance its visibility among global investors, particularly those focused on artificial intelligence, according to Sebastian Thomas, lead manager of Voya Investments' $14 billion Global Artificial Intelligence fund. Thomas stated that while Japan has many interesting companies in the AI supply chain, a lack of liquidity often hinders investment.
Kioxia, whose shares have surged 456% this year, leading gains on the Nikkei 225 index, announced in May its preparations to list American depositary shares (ADS) to expand its investor base. Thomas believes a U.S. market listing could resolve the liquidity issue, citing South Korea's SK Hynix as a precedent after its Nasdaq listing in July.
The Voya Global Artificial Intelligence fund, affiliated with Sumitomo Mitsui DS Asset Management, has delivered approximately 600% in cumulative pre-tax returns since its launch a decade ago. The fund invests in AI infrastructure companies like Nvidia, its largest holding, as well as AI application developers and companies benefiting from AI adoption, such as drugmaker Eli Lilly. While Voya does not currently hold Kioxia, it has past investments in Japanese firms and current exposure to memory makers like SK Hynix and Micron Technology, with U.S. listings making such investments more accessible for the fund, which tends to favor more liquid and larger companies.