Kioxia

Citi warns that a potential ADS listing of Kioxia could negatively affect Tokyo Electron’s share if it simply increases the number of shares outstanding. Improved shareholder returns, such as buybacks, could mitigate the impact. Citi expects free cash flow of over ¥11 trillion for the fiscal years through March 2027 and March 2028 and sees operating cash flow as sufficient for investment. At the current valuation of roughly three times expected P/E, Citi considers a capital increase undesirable; its forecasts do not yet include any capital raising or dilution from the possible transaction. » More on de.investing.com

Kioxia shares rose 2.2% to 51,690 yen after reports emerged of a possible U.S. listing via ADR, aiming to raise at least $10 billion. The company is said to be in talks with Bank of America, Goldman Sachs and JPMorgan; an offering could take place as early as 2027. The news eases concerns after the previous day’s sell-off, which was triggered by comments on AI development and a technical chart break. 15 of 16 analysts recommend the stock, and the consolidated 12-month price target is around 110,944 yen. » More on de.investing.com

Kioxia shares fell as much as 6.4%, slipping intraday to ¥48,730, weighed down by demands from leading AI labs to slow AI development, which casts doubt on demand for memory chips. In addition, the stock broke below its 75-day moving average after previously testing the 25-day line, worsening the technical picture. Mixed analyst views and a weak environment for US tech stocks intensified the selling pressure; the price remains far below the 52-week high of ¥112,700. » More on de.investing.com

Hiroo Ota, CEO of Kioxia, said a deeper production cooperation with SK Hynix is ruled out due to antitrust concerns and complications with existing joint plants with SanDisk. Kioxia wants to counter further strong price increases in NAND flash, as these could endanger long-term demand in the AI sector. Kioxia and SanDisk plan investments of over ¥5 trillion in joint plants, while SK Hynix is pursuing independent expansion plans in Korea and a packaging facility in Indiana; SK Hynix also holds convertible bonds that could amount to a 14.19% stake in Kioxia. » More on de.investing.com

Kioxia plans to accelerate its NAND flash technology to meet rising demand from the AI sector and to partially replace DRAM in certain applications. The goal is to use high-speed NAND to strengthen ties with US tech firms and differentiate its product offering from Chinese competitors. The strategy marks a realignment of the company in the memory market. » More on de.investing.com