Kioxia becomes Japan’s most valuable firm as AI mania goes on

Kioxia’s shares rose 7.6% on Friday, pushing its market value above ¥44 trillion ($274 billion), just 18 months after it was listed on the stock market. Toyota’s market value stood at ¥43.8 trillion.

The change reflects investors’ growing interest in semiconductor companies as demand for AI-related chips, especially those used in data centers, continues to rise. Kioxia’s stock has surged more than 670% this year, making it one of the best-performing stocks globally.

Market analysts say Kioxia’s rise is a sign of a broader shift, with global investors increasingly putting money into memory chip makers that are benefiting from the rapid growth of artificial intelligence.

Earlier this month, SoftBank Group had briefly overtaken Toyota to become Japan’s most valuable company, driven by excitement around its association with AI-related investments, including OpenAI. However, SoftBank later fell to fourth place after its share price declined.

Japan’s top-valued companies now include several AI-related firms, such as Murata Manufacturing, which supplies components for AI data centers, and Advantest, a maker of chip-testing equipment.

Kioxia was originally the memory-chip division of Toshiba and is known for helping develop NAND flash memory technology. The business was separated from Toshiba in 2018, acquired by a group led by Bain Capital, and renamed Kioxia in 2019.

Meanwhile, Toyota’s shares have fallen about 17% this year. Demand for automobiles has been affected by rising oil prices and geopolitical tensions while the auto industry continues to face challenges from the costly shift toward electric vehicles and software-driven cars.

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