Kioxia and M3, Inc. report divergent stock and profit trends

Kioxia has experienced significant stock price volatility, with its share price dropping to the 50,000 yen range after peaking at 112,700 yen. Despite this decline, Nomura Securities has maintained a bullish outlook, raising its target price to 131,000 yen due to rising demand for NAND flash memory used in AI data centers. The sharp drop in Kioxia's value was partly attributed to a US court order requiring approximately 37 billion yen in patent infringement payments, alongside broader semiconductor sector selling.

M3, Inc. reported a return to growth for the fiscal year ending March 2026, with revenue reaching 351.3 billion yen and operating profit rising to 73.5 billion yen. While this marks the first operating profit increase in four years, the company's operating margin has fallen to 20.9%, down from a peak of 45.7% in 2022. The company's stock has faced downward pressure, influenced by market trends and its ownership structure, in which Sony Group Corporation holds a 34.5% stake.