AI-driven NAND sales push Kioxia to top global stock performance

Kioxiahas managed to deliver the strongest stock performance anywhere on the planet in 2025 after surging by about540% year-to-dateas demand for AI-linked data storage kept accelerating.The Japanese memory chipmaker outperformed every company tracked on theMSCI World Indexduring the year, even as global markets faced repeated volatility tied to trade policy, rates, and tech spending fears.The rally pushedKioxiato the top of Japan’sTopix indexfor 2025, less than a year after the company debuted on theTokyo Stock Exchangein December.AI storage demand drives Kioxia’s pricing pressure as Microsoft and Apple become customersKioxia now carries a market value of roughly¥5.7 trillion, or$36 billion, and countsAppleandMicrosoftamong its customers as hyperscale data centers expanded to meet AI workloads, according to its latest quarterly filing from November.NAND chips are the core of data centers that power large models, and capacity has not kept pace with demand.Investors positioned around that imbalance, sendingKioxiahigher on expectations that pricing and volumes would support revenue into 2026. “In tech, we go into 2026 mainly geared to memory, whether that’s direct exposure to Kioxia or second derivative plays,” saidAmir Anvarzadeh, Japan equity strategist atAsymmetric Advisors.Amir said wafer suppliers such asSumco were also positioned to benefit next year as memory production stayed under pressure.The rally did not move in a straight line. Shares fell23% in a single session in Novemberafter quarterly earnings failed to meet elevated expectations built into the stock, thanks to concerns across AI-linked equities about stretched valuations during the second half of the year. Even so, supply conditions remained tight. “Worries about a data center investment slowdown shouldn’t really affect memory prices for next term, as the market is already heavily undersupplied,” Amir said.Japanese equities hit records as policy support meets tech demandKioxia’s rally happened alongside a record-setting year for Japanese equities. TheTopix indexclosed 2025 at3,408.97, beating the2,881.37level last seen at the peak of Japan’s late-1980s bubble economy. The index rose22%over the year, marking its third straight annual gain.Global financial markets crashed big time inAprilafter President Donald Trump’s Liberation Day tariffstriggered global selloffs, but Japan recovered relatively quickly, hitting new all-time highs byJulyas trade tensions eased.In November, Japan’s first female prime minister, Takaichi Sanae, announced about ¥18 trillion, or $115 billion, in additional stimulus funding. The package targeted 17 strategic industries, including quantum computing and nuclear fusion, reinforcing long-term tech spending plans.Some AI-linked stocks lagged late in the year, though, like SoftBankwith its 17% plunge over the past 3 months, but the company remained up about90% year to date. Market participation broadened, withsmall-cap stocks rising 27%andmid-caps gaining 26%, both beating large caps for the first time since 2022.TheNikkei 225closed at50,339.48, its second straight record year end, as gains from major stocks drove a26% annual rise, topping the Topix for a third consecutive year, withKioxiastanding at the center of Japan’s strongest equity run in decades. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.