With 540% surge, this AI chipmaker is world's best-performing stock
What's the story
Japanese memory chipmaker Kioxia Holdings Corp has seen its shares skyrocket by some 540% this year. The company's phenomenal growth has made it the top performer on the MSCI World Index and Japan's Topix benchmark for 2025. The surge in Kioxia's stock price is a testament to the tech industry's increasing demand for memory chips, especially as hyperscalers rush to build out AI infrastructure.
Market position
Kioxia's role in AI training and data centers
Kioxia, a NAND flash memory maker that debuted on the Tokyo Stock Exchange last December, is now worth some ¥5.7 trillion. The company supplies chips critical for AI training and data centers to tech giants like Apple and Microsoft. This year, major tech firms have warned of a potential memory supply shortage due to skyrocketing demand, with analysts predicting an increase in prices.
Stock performance
Investor confidence in Kioxia amid memory rush
The surge in memory demand has been a major boost for Kioxia's shares, with investors expecting strong demand and rising prices to drive its revenue. "In tech, we go into 2026 mainly geared to memory, whether that's direct exposure to Kioxia or second derivative plays," said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors Pte. Chip wafer makers like Sumco Corp are also expected to benefit from the strong memory demand next year.
Valuation concerns
Concerns over Kioxia's stock valuation
Despite its stellar performance, Kioxia's stock has drawn some criticism over its valuation, which has also affected other AI-related shares in recent months. The company's shares plummeted 23% in one day after it missed investors' high expectations with its quarterly earnings report in November. However, with memory demand still outstripping supply by a wide margin, Kioxia is well-positioned to ride out any potential AI market jitters in 2026.