Shares of Japanese flash memory specialist Kioxia Holdings have lost half their market value from recent peaks, marking a severe correction for the company and the wider artificial intelligence hardware sector.
The decline follows a sharp 12% drop in Tokyo trading on Friday, where Kioxia led a broader sell-off across AI-related equities.
A key index of chip manufacturers fell 7% in the same session, signaling that selling interest has broadened beyond individual names to the sector as a whole.
The pressure on Kioxia is part of a wider repricing in the semiconductor space.
A key index of chip manufacturers fell 7% in the same session, signaling that selling interest has broadened beyond individual names to the sector as a whole.
This move represents a sharp reversal for an industry that had more than doubled its value since the lows triggered by geopolitical tensions earlier in the year.
The selloff was initially triggered by reports concerning OpenAI, the developer of the ChatGPT platform, which sparked concerns about the sustainability of current AI capital expenditure cycles.