Kioxia Holdings, a Japanese NAND flash manufacturer, reported a net profit of 842.1 billion yen (approximately $7.6 billion) for the April to June period, a 46-fold increase compared to the same period last year.
According to a report by Yonhap News Agency citing Kyodo News, Kioxia's revenue for the April to June quarter reached 1.7671 trillion yen (about $15.9 billion), with an operating profit of 1.27 trillion yen (around $11.4 billion). However, both net and operating profits fell short of market expectations.
Kioxia projected a consolidated net profit of 1.27 trillion yen (approximately $11.4 billion) for the July to September quarter, which would be 31 times higher than the same period last year.
This surge is attributed to a significant increase in demand for semiconductor memory for data centers driven by the proliferation of artificial intelligence (AI).
Yoshihiko Kawamura, Kioxia's vice president, stated during the earnings briefing, "Demand will become even stronger; this is just the beginning. The situation where demand exceeds supply will continue even after October."
Kioxia also announced a share buyback plan worth up to 800 billion yen (approximately $7.2 billion) as part of its shareholder return strategy. Additionally, the company plans to conduct a stock split, converting each share into three.
* This article has been translated by AI.
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