Kioxia Holdings Corp. reported on July 24 that its net profit for the three months through the end of June surged 46-fold from a year earlier to 842.17 billion yen ($5.2 billion). The sharp increase was driven by strong sales of memory chips to data centers, fueled by the explosive global demand for artificial intelligence (AI).
The company's strong results reflect the growth trend in the memory chip industry, which has benefited greatly from the wave of investment in AI infrastructure. Data centers serving AI model training and operations require large amounts of high-speed memory, raising chip prices and significantly improving manufacturers' revenue.
Kioxia had previously faced a difficult period due to falling memory chip prices last year. However, the strong rebound in AI demand has helped the company turn the tide. Analysts suggest this momentum could continue in coming quarters, as major technology players increase spending on data centers and AI systems.
During the quarter, Kioxia's revenue also exceeded market expectations, thanks to strong sales of its flagship NAND flash memory products. The company also said it would continue to expand production capacity to meet the growing demand from the AI and cloud computing segments.
