Japanese flash memory specialist Kioxia has become the standout beneficiary of the generative AI boom, with fourth-quarter profits skyrocketing to ¥409bn ($2.6bn) from ¥13bn in the same period last year. The 30-fold year-over-year surge reflects intensifying demand for NAND flash memory used in AI model training and inference.

The company's shares have rallied 20-fold since listing, valuing Kioxia at ¥24.3tn and making it the MSCI World index's top performer last year. Annual profits doubled to a record ¥559bn, driven by the memory supply crunch as tech giants scramble for storage solutions. Kioxia expects continued momentum, projecting another 75% revenue jump in the June quarter.

Formerly Toshiba Memory, the company was sold to a Bain Capital-led consortium for $18bn after an accounting scandal. Unlike Samsung and SK Hynix which produce both NAND and DRAM, Kioxia focuses exclusively on NAND flash memory—the preferred storage for AI applications requiring quick access to previously dormant data.

CEO Hiroo Oota called it a "large wave of AI demand" that's reshaping the memory market. Kioxia forecasts NAND market growth in the high teens this year, with demand potentially outstripping supply by 2027 as AI adoption accelerates across industries.