Intel stock spikes after report of possible US government stake
Investing.com - Morgan Stanley (NYSE:MS) upgraded KIOXIA Holdings (285A:JP) from Equalweight to Overweight on Tuesday, raising its price target to JPY2,900.00 from JPY2,200.00.
The upgrade reflects Morgan Stanley’s positive outlook on NAND market conditions, despite concerns about potential market correction in late 2025 or early 2026 due to uncertainty over U.S. tariff policy.
Morgan Stanley highlighted improving data center capital expenditure trends and strong solid-state drive (SSD) demand growth, particularly driven by retrieval-augmented generation (RAG) technology for company-specific AI applications.
The investment bank noted KIOXIA has maintained profit margins above competitors’ NAND businesses for several quarters, with positive free cash flow contributing to reduced leverage.
Morgan Stanley described the risk-reward profile as "appealing," suggesting KIOXIA’s valuation discount could narrow if its BiCS-8 technology drives growth in SSD market share and cost reduction efforts show visible results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.