Kioxia Holdings, listed on the Japanese Stock Exchange, witnessed a 16.83% rising during the last trading session, to reach 2,790.00 yen, after he recorded its highest level during the session at 2,798.00 yen, and the lowest level at 2,330.00 yen.
This height is supported by the increasing demand for NAND memory chips, and the improvement of industry prospects, as well as other factors that strengthened the performance of the arrow.
Causes of the strong height of Kioxia Holdings
The last trading session witnessed a major positive momentum for Kioxia Holdings, as a result of several major factors that contributed to attracting investor attention, most notably:
High demand for Nand memory chips
The semiconductor industry is witnessing a remarkable recovery, especially in the NAND memory chips sector, which is used in smartphones, computers, and data centers, and with the recovery of global demand, investor expectations about the improvement of Kioxia’s revenues increased during the coming periods.
The price of chips is improved globally
After a period of sharp decline in memory chips prices during the past year, prices began to recover driven by increasing demand, especially with growth in the artificial intelligence sector and cloud computing, and this improvement in prices has strengthened optimism about Kioxia’s ability to achieve stronger profits.
Signs of a possible fusion with Western Digital
Media reports recently circulated that there are advanced talks between Kioxia and Western Digital regarding an integration agreement or a possible strategic partnership, and if this merger is achieved, it will create an industrial power capable of competing with major companies in the chips sector such as Samsung and SK Hynix, which increases the attractiveness of Kioxia share.
Market morale improves in the technology sector
The shares associated with the semiconductor industry have witnessed extensive heights during the recent period, with the direction of investors towards the technological sectors that are expected to benefit from the mutations coming in artificial intelligence, the Internet of Things, and cloud computing, and this is positively reflected on the share of Kioxia.
Positive financial expectations for the company
Expectations indicate that Kioxia may announce strong financial results during the next quarter, especially after the recent rise in the demand for chips, investors are awaiting the official announcement of profits to ensure the continued positive direction.
Future expectations of Kioxia Holdings
With this great rise, there are many possible scenarios for the future of the stock during the coming period:
Continuing the upward trend: If the global prices of NAND memory chips continue to improve, and the profit expectations for the company will increase, the stock may witness more gains, with the possibility of targeting the level of 3,000 Japanese or higher yen in the near future.
A possible correction after the sharp rise: after the rise of 16.83% in one session, the arrow may witness temporary profits, as some investors may liquidate their positions after this strong rise, and if the positive momentum remains strong, it is expected that the decline is limited.
A possible integration with Western Digital: Any positive development on the integration talks with Western Digital may be a strong catalyst for more height in the arrow, as this integration may improve the company’s competitiveness globally.
Global economic developments: total economic factors, such as global interest rates, supply chains, and global demand for electronics must be followed up, as these factors may affect the performance of the stock in the future.
