Japan's Kioxia plans US depository shares amid surging AI driven NAND demand

Kioxia Holdings plans to offer US depositary receipts between April to June 2027 to use runaway investor demand for exposure to AI-related semiconductor shares.

Chief financial officer, Yoshihiko Kawamura, said in its annual shareholders' meeting that Kioxia intends to leverage the US market after the close of its current fiscal year at the end of March 2027. Describing the move as significant in creating a direct market link, he indicated the offering could take place between April and June.

The company, which manufactures flash memory and solid-state drives (SSDs), currently has the best-performing shares on the MSCI World Index. Kioxia is also evaluating a stock split to improve accessibility for retail investors.

Kioxia, a major producer of NAND storage - a non-volatile technology that retains data without a power source - reported a nearly 37% year-on-year (YoY) increase in revenue, driven by rising flash memory demand from generative AI-focused data centres and enterprise customers.

The company is benefiting from growing demand for storage systems as AI workloads expand. It is also gaining from increased spending by data-centre builders, alongside demand for mechanical hard disc drives.

Investor interest in Kioxia has been exceptionally strong. According to documents released on its annual general meeting, the company's stock price increased by at least 20 times between the end of April 2025 and the end of April 2026. Representative Director Nobuo Hayasaka noted that both share liquidity and the total number of shareholders rose substantially during the period.

Kioxia's shares surged as much as 15%, contributing to an almost 800% rise this year. The company now joins South Korean chipmaker SK Hynix in seeking greater access to the world's largest capital market.

Chief Executive Officer Hiroo Ota told shareholders that AI-related demand remains strong, adding that the positive trend in the NAND market is also evident across PCs and smartphones.

The company remains subject to a Consolidated Leverage Ratio target of 3.00:1 under its Senior Facility Agreement until March 31 next year.

Read More: Nuvama expects near double-digit growth in FMCG despite weak monsoon concerns