Japanese chipmaker Kioxia's stock price plummeted, with its market value halved from its peak
Memory chip maker Kioxia's market value has halved in a month since becoming Japan's most valuable company, as investors grow concerned that the AI-driven industry rally has gone too far. In early trading in Tokyo on Friday, Kioxia's share price plunged 14%, down 51% from last month's high, and its market value evaporated by at least 29.5 trillion yen ($181.7 billion). Driven by the artificial intelligence craze, the market demand for memory and data storage has surged. In mid-June, Kioxia's stock price soared more than 600% during the year, and its market value exceeded . But since then, its market value ranking has dropped to Japan's fourth-largest company. Investors are paying closer attention to global chipmakers, questioning whether returns from massive artificial intelligence investments will be enough to support their lofty valuations. On Thursday, the U.S. chip giant index fell more than 4%. Traders have become more cautious about artificial intelligence in recent months, selling stocks related to it and investing in lagging sectors. Analysts remain optimistic about Kioxia, predicting a return of approximately 118% over the next year. In addition, the adjustment of the Topix Index in October is expected to bring large-scale passive capital inflows. But if the decline intensifies, the leveraged positions of Japanese retail investors expose Kioxia to further downside risks. Some investors view shareholder Bain Capital's exit as a sign that the semiconductor cycle and the stock's rally may be nearing a peak.