ChainThink reports that, according to Goldman Sachs' report dated June 30, Goldman Sachs raised its 12-month target price for Kioxia Holdings, a Japanese NAND flash memory manufacturer, to JPY 116,000 and maintained its Buy rating.
Goldman Sachs believes that ongoing construction of AI data centers continues to drive strong demand for storage, with NAND market supply and demand imbalances exceeding prior expectations. The price increase cycle may extend until mid-2027, with some segments potentially lasting until 2028.
Goldman Sachs has raised its operating profit forecasts for Kioxia for FY3/27, FY3/28, and FY3/29 by 9%, 19%, and 29%, respectively, and its EPS forecasts by 10%, 19%, and 29%, respectively.
Its expected average selling price for NAND is projected to rise significantly in 2026 and continue growing by 38% in 2027, higher than the previous forecast of 27%.
The report states that major storage manufacturers continue to prioritize capital expenditures on DRAM, and significant new NAND supply may not be clearly released until 2028.
Goldman Sachs expects Kioxia's operating profit for the first quarter of FY3/27, to be reported on July 31, to reach ¥1.417 trillion, exceeding the company's guidance of ¥1.298 trillion and the Bloomberg consensus estimate of ¥1.36 trillion.
Goldman Sachs also noted that cyclical risks in the NAND industry persist, with potential risks including a slowdown in AI investment, the rise of Chinese NAND manufacturers, rising costs, fluctuations in capacity utilization, a significant appreciation of the yen, and slowing demand for non-AI applications.