Movement Alert|KIOXIA Holdings Falls 8% in Pre-Market Trading, AI Overcapacity Fears Weigh on Memory Chip Sector

Market Focus07-02 20:01

On July 2, KIOXIA Holdings fell 8% in pre-market trading, trading at $47.47/share, with turnover of $66,000. The stock extended its recent correction as concerns over AI computing overcapacity triggered broad-based selling across the memory chip sector.

On the news front, U.S.-based Meta reportedly plans to sell excess AI computing capacity, sparking market fears that cloud service providers may struggle to convert massive computing investments into revenue, potentially undermining continued AI infrastructure spending and dragging down upstream memory chip demand expectations. Meanwhile, international investment bank Bernstein previously maintained an Underperform rating on KIOXIA, estimating approximately 50% downside from current levels, arguing that the company's elevated gross margins reflect a temporary supply-demand gap and that NAND flash prices may be peaking.

The stock had surged over 17% on June 25 following its announcement of a U.S. mainboard listing plan, but has since given back gains amid profit-taking and persistent valuation concerns. On July 1, the stock fell 11.16% during regular trading as the broader semiconductor sector weakened.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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