Citi,JPMorgan Chase、Morgan StanleyMany major Wall Street institutions quickly raised their target prices after Kioxia released its earnings report last Friday. According to Bloomberg data, as of Monday,The average analyst price target for Kioxia jumped by about 44% to 63,843 yen ($402) from about 44,000 yen before the earnings release, setting a record for the largest post-earnings target price increase among Nikkei 225 constituent stocks.Meanwhile, Kioxia shares opened Monday unable to close due to the accumulation of buying orders, hitting the upper limit of 16%.
This round of collective upward adjustment occurred against the background that Kioxia's share price has soared by nearly 2000%. Over the past year, driven by the global wave of AI data center construction, Kioxia has become one of the top performing major stocks in the world this year. This target price increase means that there is still more than 40% upside relative to last Friday's closing price, indicating that institutional investors' judgment on their subsequent growth space has not been shaken by the high share price.
Morgan Stanley ranks Kioxia as its first choice, optimistic about the continuous expansion of AI practical applications
In this collective upgrade, Morgan Stanley's statement is particularly positive, listing Kioxia as its preferred target. Morgan Stanley pointed out,The application of AI in real-world scenarios is expected to continue to grow, and Kioxia has steady free cash flow and considerable shareholder return potential.Citigroup Japan Global Markets and JPMorgan Securities also quickly followed up after the earnings release and raised their target prices.Kioxia's earnings report released on Friday showed a sharp jump in profits and gave a performance outlook stronger than market expectations, which directly triggered the intensive adjustment of the above-mentioned institutions.
NAND expands market share as Korean rival turns to HBM to offer window
Kioxia's predecessor was the chip business unit of Toshiba, and it has been deeply involved in the field of NAND flash memory for a long time. NAND is a high-speed storage technology that has widely replaced hard drives, with application scenarios ranging from laptops to large-scale data centers.It is worth noting that although Kioxia's Korean competitors produce DRAM at the same time, they have recently shifted more resources to the R&D and production of high bandwidth memory (HBM). This strategic shift objectively creates space for Kioxia to take on more orders in the NAND market, further consolidating its competitive position in this segment.
According to previous reports from Bloomberg, Kioxia is preparing to go public in the United States, with a view to further expanding capital market financing channels in the AI boom cycle. This financial report exceeds expectations and superimposes the collective endorsement of Wall Street institutions, which is expected to provide strong support for its US stock listing plan and continue to attract the attention of international institutional investors.
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