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Kioxia Reports Strong Q2 Revenue Growth, Ending Four-Quarter Decline, with Bullish Q3 Guidance Driven by AI and Data Center Demand

Thursday, November 27, 2025 at 06:40 AM

NAND flash memory producer Kioxia Holdings reported its first quarter-over-quarter revenue increase in four periods (up 30.8%), along with a significant increase in operating profit, signaling a recovery in the memory market. The company issued a strong Q3 guidance, forecasting substantial sales and profit growth, attributing the positive outlook to anticipated supply shortages and robust demand from smartphone, AI/data center, and hyperscaler customers.

Context

Kioxia’s fiscal Q2 (July-September) revenue rebounded to ¥448.3 billion, up approximately 31% quarter-on-quarter, marking a significant turnaround, though the figure remains 6.8% below the prior year. This growth, the first sequential increase after four quarters of decline, was driven by a clear inflection in enterprise SSD demand for AI and data centers, alongside recovering smartphone NAND volumes and improving average selling prices (ASPs). Despite the QoQ revenue growth, net profit fell 62% year-over-year to ¥40.7 billion, missing market expectations due to a product mix shift toward lower-margin smartphone components. Looking ahead, Kioxia issued bullish guidance for Q3, forecasting record revenue of ¥500-550 billion, a sequential increase of 12-23%. This optimism is fueled by robust AI-driven NAND demand and tightening supply, which is expected to boost profitability. This trend signals positive momentum for the entire memory supply chain, including equipment suppliers like Towa Corporation. Towa is a key beneficiary, as its world-leading compression molding equipment is essential for manufacturing the High-Bandwidth Memory (HBM) chips seeing surging demand from the generative AI boom.

Sources (21)

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