Kioxia's monster Q4 outlook sends memory stocks soaring again

"For suppliers, capacity constraints remain a challenge," MS Hwang, a research director at Counterpoint, told Investing.com. "With cleanroom space in short supply, adding new equipment is going to be tough, so until new facilities come online, we might see some companies trying to explore creative ways to maximize existing cleanroom capacity, even from other industries."

In the third quarter, Kioxia’s SSD and storage revenue rose 7.8% year over year to ¥300.4 billion, while smart device sales climbed 59.1% to ¥186.3 billion.

“I’m structurally still very positive on the NAND market, with expectations that sell side ASP assumptions for the rest of 2026 will need to be revised up…a lot in Japan," said Joseph Wrenn, Asia Tech Specialist at Mizuho.

The guidance triggered broad gains across the memory complex. Shares of Micron (NASDAQ: MU) rose another 3.4% in premarket trading after adding 9.9% in the previous session. SanDisk (NASDAQ: SNDK), which relies heavily on Kioxia for NAND manufacturing and supply, gained a further 6.2% premarket after jumping 10.7% yesterday.

In Asia, Kioxia ended the day 12.4% higher, while major memory suppliers Samsung (KS:005930) and SK Hynix (KS:000660) saw their shares advance 6.4% and 3.3%, respectively.

Speaking at a Wolfe conference yesterday, Micron CFO Mark Murphy highlighted accelerating shipments of its latest high-bandwidth memory product.

“We have been in high volume production on HBM4. We’ve commenced customer shipments of HBM4. And we see shipment volumes ramping successfully this calendar, Q1,” Murphy said. “This is a quarter earlier than we mentioned during our December earnings call.”

Murphy added that Micron’s HBM4 delivers performance exceeding 11 gigabits per second and said the company is “highly confident in our HBM4 product performance and quality and reliability.” He described the broader backdrop as robust, saying the company’s “business is on an extraordinary trajectory” with demand “significantly higher than our ability to supply.”

“We continue to expect supply demand to be tight beyond 26. We’re doing everything we can to plan and invest appropriately for our customers’ needs over time,” he said.

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