Alright regards, the time to buy Kioxia is now and DRAM is under exposed
If you want a detailed AI explanation of why you should buy Kioxia (KXIAY) this isn’t the place. This here is a human brained thesis with about 15 minutes of doctoral level research.
- NAND demand is expected to 2-3x through 2027 with some analysts expecting this to extend into 2028 and beyond.
- Kioxia is doing it at half the price of its competitors via horizontal scaling vs vertical. This means Kioxia’s margins are juiced to the t\*ts and they’re only expected to grow.
- Demand is outpacing growth. Kioxia is leading the pack in new production facilities and still won’t be close to catching up until 2029.
- The largest threat to this whole thing is capex reduction and that problem got ran over by a bus this week. Jensen said this whole AI and data enter cycle has only begun. Google confirmed by screwing over their short term share holders and diluting just to have some extra cash to fund this golden cow.
- Even if the cycle structure is intact, it’s far from over. And the cycle structure is gone. All of the big name memory and storage companies are writing multi year contracts up the azz. SNDK said screw the consumer segment on their last call. It’s all big contracts from here.
Kioxia is planning a grand entrance into the U.S. market soon (guessing NASDAQ). That sweet American cash is going to fly in and send this undervalued thing to the moon. You can get it now via DRAM but Kioxia makes up a whole 2% of the holdings. Or, you can buy it OTC as KXIAY and get catapulted to space when your shares convert and everyone on Robinhood starts buying.
Thanks, have a great evening.