SK Hynix Records Large Unrealized Gains as Kioxia Stake Value Surges
What drove the massive returns from SK Hynix’s investment in Kioxia, overshadowing its earnings? Value increase driven by AI data centers and SSD demand—find out the key points now
SK hynix is reaping massive profits from its investment in Japan's NAND flash maker Kioxia. In its secondquarter earnings announcement on the 29th, the company said it posted 6.2166 trillion won in nonoperating income, a figure even larger than the operating profit it earned from its core memory semiconductor business.
Behind this profit is the rise in the value of its Kioxia stake, which it secured during the 2018 Toshiba Memory investment process. After Kioxia was listed on the Tokyo Stock Exchange in December 2024, its stock price and market capitalization rose sharply amid expanded AI investment and increasing demand for NAND flash. SK hynix is known to have recognized a substantial profit by reflecting gains from the partial sale of its stake and the valuation gains on the remaining shares.
Market observers believe that if investment in AI data centers and demand for enterprise SSDs continue, Kioxia's earnings and corporate value could remain solid for the time being. However, they also point out that the NAND flash industry is highly sensitive to changes in supply and demand, meaning valuation volatility could grow depending on the pace of future AI investment and supply conditions.