Memory chipmaker Kioxia Holdings replaced Toyota Motor to become Japan¡¯s largest company by market value, underscoring how the global artificial intelligence boom is reshaping the country¡¯s corporate landscape.
Shares of the Japanese memory chipmaker surged 7.6% Friday, lifting its market value above ?44 trillion ($274 billion) just 18 months after its stock market debut. Automaker Toyota, which earlier briefly lost the top spot to SoftBank Group, closed with a market capitalization of ?43.8 trillion. The figures include treasury shares.
The shift highlights investors¡¯ growing preference for semiconductor companies, as demand for chips used in AI data centers has climbed alongside peers worldwide. Kioxia has surged more than 670% this year, making it the best performer on the MSCI World Index.
Kioxia¡¯s rise to become Japan¡¯s most valuable company is ¡°symbolic¡± of a broader shift as global funds pour money into memory-chip makers, said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. ¡°It may be a bit of an exaggeration to call it an industrial transformation, but it¡¯s a development that certainly gives that impression.¡±
SoftBank Group became the nation¡¯s most valuable company earlier this month by surpassing Toyota Motor on enthusiasm surrounding plans for OpenAI¡¯s listing. The technology investor has since slipped to fourth place after a broader risk-off selloff cooled an overheated rally.
Japan¡¯s latest list of top 20 stocks now includes AI-related names such as Murata Manufacturing, which supplies components to AI data centers, and chip tester maker Advantest.
Kioxia traces its roots to Toshiba¡¯s memory-chip business, which pioneered NAND flash memory technology. The unit was spun off and acquired by a Bain Capital-led group in 2018 and rebranded itself as Kioxia a year later.
In contrast with these AI beneficiaries, Toyota¡¯s shares have steadily lost ground and have underperformed the broad market. The stock has fallen around 17% this year to date as Middle East tensions and higher oil prices weighed on demand for automobiles.
The auto industry also continues to grapple with a costly, complex transition toward electric vehicles and software integration, pressuring growth prospects across the sector.
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