Kioxia, a pioneer in NAND flash memory, debuted on the stock market with expectations of a strong performance. However, its IPO received a lukewarm response, priced at the mid-point of its range. The company, spun off from Toshiba, struggled with past scandals and competition from Samsung and SK Hynix. Its valuation of $5.2 billion is significantly lower than the $18 billion bid led by Bain Capital in 2018.
Investors remain cautious about Japanese semiconductor stocks due to potential trade disruptions. Kioxia's reliance on NAND, a volatile commodity, and the global smartphone market downturn are concerns. Despite potential growth in AI-driven data center demand, Kioxia's limited product range could hinder long-term success.
