Just quickly added to my position. Hope the Japanese are in the mood to buy this weekend.
Kioxia stock is rising thanks to new merger speculation with Western Digital and strong AI storage innovations. A record quarter and an accelerated share buyback underscore the positive trend.
At a Glance:
- Merger Rumors with Western Digital
- Record quarter with 415% revenue growth
- Share buyback completed ahead of schedule
- New QLC storage technology unveiled
Kioxia rose 5.0 percent on Friday to 296.00 euros. This was driven by new speculation about a possible merger with its long-standing joint venture partner, Western Digital. Added to this were positive reactions to technical breakthroughs in AI storage solutions.
Merger talks with Western Digital are picking up steam again
Market observers reported on August 21, 2026, that new rumors were circulating about a takeover or merger between Kioxia and Western Digital. Both companies already operate joint manufacturing facilities in Japan. According to reports, they are now exploring a merger to better keep pace in the rapidly growing market for AI infrastructure.
Despite a spectacular 419 percent surge since the start of the year, the stock price remains below its estimated fair value. Over the past 30 days, the stock had fallen by 17 percent. Today’s rally points to a shift in sentiment—the focus is shifting back to strategic consolidation in the industry.
Technical Advances Support the AI Narrative
The merger talks are based on a close operational relationship. On August 12, 2026, Kioxia and SanDisk, a brand of Western Digital, jointly unveiled a new QLC 3D flash memory technology. The technology is specifically designed for AI and data-intensive applications and, according to the companies, achieves the highest bit density ever measured for QLC NAND memory.
As early as the beginning of August, Kioxia’s “GP Series” SSD was honored as the best new product at the Future of Memory and Storage 2026 trade show. These successes solidify the company’s position in the age of AI inference. It is precisely this trend that is driving the company’s financial results for the current fiscal year.
Record Quarter and Accelerated Share Buyback
At the end of July, Kioxia reported revenue of 1,767.1 billion yen for the first quarter. This represents a 415.5 percent increase over the previous year. Non-GAAP operating profit reached 1,326.2 billion yen in the same quarter—more than the company earned in the entire previous year.
Management is also being generous toward shareholders. On August 10, Kioxia completed a 800 billion yen share buyback program, repurchasing 16.1 million shares. The program was originally scheduled to run through October—Kioxia brought the completion forward by more than two months. This pace signals confidence in future cash flow trends.
Outlook
With an RSI of 48.6, the stock is currently in neutral territory. Previous overbought phases from the current year thus appear to have been digested. The memory market is in the midst of a supercycle, driven by demand from generative AI systems. Whether the merger talks with Western Digital result in a concrete deal remains the decisive factor for Kioxia’s long-term valuation.
