Kioxia Shares Halve From Peak as AI Investment Concerns Mount

Japanese memory-chip giant Kioxia is a key barometer for both the global storage-chip industry and the AI boom. The company had benefited from technology giants’ expansion of AI infrastructure, which drove memory demand and valuations sharply higher. But as competition in the chip market intensifies and investors question whether massive AI spending can translate into actual profits, capital is flowing out of richly valued technology stocks. Kioxia’s reversal has become an important gauge of concerns over a global AI investment bubble and shifting market flows.

Kioxia’s shares in Tokyo have plunged more than 50% over the past month, halving from their record high and erasing as much as 30 trillion yen in market value. The decline accelerated in the latest trading session, when the stock slumped another 13%. The rout reflects both cyclical volatility in the memory industry and fierce competition, while also showing that institutional investors are accelerating sales of overvalued AI-related stocks amid growing doubts about Kioxia’s business outlook.