Kioxia's recent deleveraging + AI SSD double buff stacking, and Fitch upgrading the rating, are considered to acknowledge this logic, but NAND cycle fluctuations are the ultimate boss. Let's see if it can truly achieve a soft landing.

CoinWorld News reports that Fitch Ratings stated in a report that Kioxia appears to be better able to withstand the inherent volatility of the NAND flash memory market while maintaining financial flexibility to continue investing in technology and capacity. Fitch noted that this Japanese chip manufacturer's balance sheet has been strengthened mainly due to improved profitability, enhanced cash generation ability, lower financing costs after debt refinancing, and ongoing deleveraging efforts. Fitch also specifically highlighted the strong demand for enterprise-grade solid-state drives (SSDs) driven by artificial intelligence (AI), which, as data center demand continues to grow, is expected to keep increasing its share of the company's sales. However, Fitch stated that given Kioxia's profitability is highly sensitive to NAND flash pricing and supply-demand changes, future rating actions will depend on whether there are signs that the cyclical fluctuations in the memory chip market are easing. Fitch has downgraded Kioxia's issuer default rating.