Analysts are maintaining bullish views on Kioxia Holdings Inc. despite a deepening share price correction, saying the stock is likely to resume its upward trajectory once supply-demand conditions improve.

Even with the recent sell-off, the average target price for Kioxia shares implies a potential upside of 130% from current levels, according to data compiled by Bloomberg. This optimism stems from the expectation that the memory chip market, which has been grappling with oversupply, will rebalance.

While the timing of such a rebalancing remains uncertain, the consensus among analysts is that Kioxia is well-positioned to benefit. The company's focus on NAND flash memory, a sector expected to see demand recovery, underpins these positive outlooks. Investors are advised to monitor the evolving supply-demand dynamics in the semiconductor industry, as this will be the primary driver for Kioxia's stock performance in the coming months. The current price weakness is viewed by many as a temporary phase before a significant rebound.