Kioxia shares face pressure from massive margin-buying buildup

Kioxia Holdings is facing significant downward pressure on its share price due to an accumulation of leveraged long positions. As of October 15, outstanding margin buying in the stock totaled approximately 920 billion yen (US$5.8 billion), representing the largest such balance among all companies listed on the Tokyo Stock Exchange.

Market analysts warn that this bloated margin buying could trigger a deeper price decline. If retail investors are forced to liquidate their positions at a loss as margin deadlines approach, it could lead to further selling pressure. Trading turnover has already seen a sharp decline, dropping 84 percent from its peak to 766 billion yen.

Kioxia, a major manufacturer of NAND flash memory used in artificial intelligence servers, has seen its share price fall 63 percent from a record high set in June. Analysts suggest the margin balance may remain elevated until at least the end of December.