Memory Chip Maker Forecasts Massive Profit Jump on AI Demand

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Memory Chip Maker Forecasts Massive Profit Jump on AI Demand

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Kioxia Holdings, a major manufacturer of NAND flash memory chips, has announced a projected 48-fold increase in net profit for the April-June quarter of fiscal 2026, forecasting 869 billion yen (approximately $5.6 billion USD). The company also anticipates its operating profit to reach 1.3 trillion yen ($8.2 billion USD) for the same period. This optimistic outlook follows a strong performance in the fiscal year ended March 2026, where Kioxia reported a consolidated net profit of 554.4 billion yen, roughly doubling the previous year’s figure, on sales that rose 37.0% to 2,337.6 billion yen. Operating profit for that fiscal year increased by 92.7% to 870.4 billion yen.

The substantial profit forecast is largely driven by the booming demand from artificial intelligence (AI) data centers, which are fueling increased prices and shipments of memory semiconductors. Kioxia CEO Hiroo Ota emphasized that the company is “riding the large wave of AI demand” and expects the “strength of the flash memory market to continue” as AI becomes a fundamental pillar of society. The global NAND flash market, crucial for AI infrastructure, is estimated to exceed $60 billion in 2024 and is projected to surpass $100 billion by 2034.

Market analysis indicates that NAND prices more than doubled in the March quarter and are expected to continue rising due to tight

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