Kioxia Holdings shares plummeted 15% on July 16.
The decline led a broader sell-off across the Tokyo Stock Exchange. Japan’s Nikkei 225 index fell nearly 3% as investors exited artificial intelligence and semiconductor stocks.
The sell-off occurred despite strong earnings from industry bellwether Taiwan Semiconductor Manufacturing Co. (TSMC). Investors engaged in profit-taking following a recent surge in technology valuations.
Market movement followed overnight weakness in U.S. chip stocks and a sharp decline in South Korea’s KOSPI index. Kioxia’s drop reflects investor anxiety regarding the sustainability of the AI-driven memory boom.