Kioxia Teases Dividends and Buybacks After 65% Stock Crash

Memory chipmaker Kioxia Holdings Corp. is feeling the heat after its shares crashed 65% from their June peak. The steep drop erased roughly $245 billion in market value. This sudden downturn is now fueling strong speculation that management will speed up dividend payouts and announce share buybacks to calm investors.

The massive selloff follows a wider correction in global artificial intelligence stocks and growing competition from Chinese memory manufacturers. Kioxia previously surged more than 500% as data centers rushed to buy flash memory. At its peak, the stock briefly made Kioxia the most valuable listed company in Japan ahead of Toyota Motor.

Market experts note that Kioxia still generates solid cash flow thanks to steady demand from data centers and existing long term supply agreements. Analysts believe that introducing share buybacks could send a strong signal to the market that the stock is oversold and management has confidence in future growth.

Traders will get a better look at the company's financial health when Kioxia reports its fiscal first quarter results on Friday. Investors want clear answers on the exact dividend timeline and whether share buybacks will become official policy soon.