ChainThink report, July 1: According to a June 30 report from Goldman Sachs, Goldman Sachs has raised its 12-month price target for Japan's NAND flash memory manufacturer Kioxia Holdings to JPY 116,000 and maintained its "Buy" rating.

Goldman Sachs believes that ongoing construction of AI data centers continues to drive elevated demand for storage, with NAND market supply-demand tightness exceeding prior expectations. The price uptrend cycle could extend through mid-2027, with certain segments potentially lasting into 2028.

Goldman Sachs has revised up its operating profit forecasts for Kioxia by 9%, 19%, and 29% for FY3/27 through FY3/29, respectively, and increased EPS forecasts by 10%, 19%, and 29%, respectively.

It expects the average selling price (ASP) of NAND to surge significantly in 2026 and continue growing by 38% in 2027, surpassing the previous forecast of 27%.

The report notes that major memory manufacturers remain prioritizing capital expenditures toward DRAM, with new NAND supply likely only materializing noticeably from 2028 onward.

Goldman Sachs anticipates Kioxia’s Q1 operating profit for FY3/27, to be announced on July 31, could reach JPY 1.417 trillion, exceeding the company’s guidance of JPY 1.298 trillion and Bloomberg consensus of JPY 1.36 trillion.

Goldman Sachs also cautioned that cyclical risks persist within the NAND industry, with potential risks including slowed AI investment, rising presence of Chinese NAND manufacturers, cost inflation, fluctuations in capacity utilization, significant appreciation of the yen, and weakening demand from non-AI applications.