Jing Ji Guan Cha Wang·2025-11-14 05:52Core Viewpoint - Kioxia's disappointing financial results reflect uncertainties at the tail end of the industry's cyclical low, yet there is optimism regarding the overall upward trend in NAND prices [2][7]. Financial Performance - Kioxia reported a net profit of 40.7 billion yen (approximately 1.873 billion RMB) for Q2 of FY2025 (July-September), a significant decline of 62% year-on-year, falling short of market expectations of around 47.4 billion yen [4][5]. - The poor performance is attributed to seasonal smartphone demand, which led to a high proportion (35%) of low-margin smart device products, while the share of high-margin AI data center products remained low [4]. Market Reaction - Following Kioxia's financial report, its stock price plummeted by 23.03% to 10,025 yen, causing a ripple effect in the U.S. market, with major storage companies like SanDisk, Seagate, and Western Digital experiencing declines of 15.6%, 7.31%, and 5.39% respectively [5][6]. - Concerns over global storage chip supply-demand imbalances were heightened, despite strong AI and data center demand, as Kioxia's results revealed profitability pressures [5]. A-Share Market Impact - The negative impact of Kioxia's report extended to the A-share market, with stocks like Zhaoyi Innovation and Baiwei Storage dropping by over 3% and 11% respectively [6]. - The A-share storage sector had previously benefited from a "price surge" in the global storage chip market and the explosive demand from AI [6]. Future Outlook - Analysts remain optimistic about the storage sector's rebound, driven by AI demand, despite the short-term panic triggered by Kioxia's results [7]. - Kioxia anticipates record revenue and profit for Q3 of FY2025 (October-December), primarily due to higher average selling prices and increased NAND demand related to AI [7].