Goldman Raises Kioxia Target as AI-Driven NAND Shortage May Last Until 2028
Kioxia is a major Japanese manufacturer of NAND flash memory, with products widely used in data centers and enterprise solid-state drives. Generative AI is fueling demand for high-performance storage, but memory producers are prioritizing capital spending on DRAM, limiting additions to NAND capacity. The resulting supply-demand gap has become a key factor affecting prices and Kioxia's earnings.
Goldman Sachs recently raised its Kioxia price target for the second time, to ¥116,000 per share, while maintaining a Buy rating. The report forecast that continued growth in demand for enterprise SSDs from AI data centers could extend the NAND shortage and price-increase cycle through the end of 2027. Tight supply may not begin to ease until 2028.
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The history behind this eventGoldman Sachs Sees AI-Driven Memory Chip Shortage Lasting Through 2028, Raises Samsung and SK Hynix Targets
The expansion of AI server capacity is driving demand for HBM, DRAM and NAND. Servers now account for roughly half of global DRAM demand and about 40% of NAND demand. Goldman Sachs said HBM consumes more wafer capacity, while limited expansion in conventional memory production makes this AI-driven period of shortages and high profitability different from previous cycles.
In a June 1, 2026, report, Goldman Sachs forecast that the DRAM supply deficit would reach 5.9% in 2027 and that shortages would persist through 2028. It raised its 12-month price target for Samsung Electronics to 480,000 won and for SK Hynix to 3.5 million won, retaining “Buy” ratings on both. Its price target for MediaTek was NT$5,000.
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