S&P Global Ratings raised Kioxia Holdings Corp.’s long-term issuer credit rating to 'BBB-' from 'BB+'. The agency issued a stable outlook for the company. S&P expects Kioxia to reach a net cash position by the first quarter of fiscal 2026.
The upgrade follows projections that earnings will significantly exceed previous forecasts over the next two years. Growth in artificial intelligence is driving a favorable memory market. Strong earnings from industry leaders like Nvidia have further bolstered demand for AI-related data center memory.
Kioxia’s market capitalization recently surpassed ¥30 trillion for the first time. The company’s share price increased 4% on May 22. Investors remain cautious due to the historical cyclicality of the memory market. This cyclicality is currently capping the stock’s price-to-earnings ratio.