The Nikkei 225 Index slumped by over 5% today, July 17, as the rout in Asian technology companies accelerated. It has now moved into a technical correction after falling by 12% from its highest point this year. While most companies dropped, the biggest losers were tech firms like Tokyo Electron, Advantest, and Kioxia.
Kioxia stock has lost 50% of its value
Kioxia Holdings stock has been in a free fall in the past few weeks, moving from a high of ¥112,750 in June to ¥52,110. This decline coincided with the ongoing sell-off in memory companies like SK Hynix, Micron, and Samsung.
For starters, Kioxia, which briefly became the most valuable Japanese company by market cap, is a top player in the memory industry.
It makes products like flash memory, solid-state drives, and SD memory cards. Some of its top customers include Apple, Microsoft, and Dell.
The ongoing Kioxia crash is not because its business is struggling. Indeed, the most recent numbers showed that its business is thriving, with demand for its products surging. Its recent earnings showed that its revenue and profits surged, mirroring the performance of other companies like SK Hynix and Samsung.
Therefore, the ongoing Kioxia crash is because of profit-taking after the stock jumped by over 5,400% from its lowest level in 2025 to its highest point this year. It is common for stocks to pull back a bit after having such a big surge.
Also, there are concerns about whether spending among the hyperscalers will continue in the coming months, as investors have become sensitive about their profitability.
Advantest and Tokyo Electron stocks have also plunged
Other Japanese tech companies have also plunged. Tokyo Electron stock has plunged by 21% from its highest point this year, and is now trading at its lowest level since June 11. Advantest stock plunged by 25% from its highest level this year.
Tokyo Electron is a top semiconductor equipment manufacturer that makes tools that go inside chip fabs. Its tools make it possible for companies to make wafers, focusing on deposition, coating, etching, and cleaning.
On the other hand, Advantest is a top company focusing on automatic test equipment (ATE). Its top clients are companies in Taiwan and South Korea, with its biggest names being TSMC and Samsung.
Therefore, these stocks are falling as jitters in the semiconductor industry emerge, even after the recent robust earnings. TSMC published strong numbers on Thursday, while Micron and Samsung released similar results recently.
The two companies have benefited substantially from the ongoing boom in the chip industry.
Tokyo Electron’s revenue jumped to ¥711 billion in Q4’26 from ¥655 billion in the same period last year. Its profit jumped by 49% to ¥214 billion.
Advantest also released strong numbers, with its revenue and profits soaring to a record high. Its net income soared to ¥375 billion from the ¥161.2 billion it made a year earlier.
Other technology-related stocks have also plunged recently. Notably, Softbank Group stock plunged to ¥5,264, its lowest level since May 20th, and 42% below its highest point this year. Lasertec and Taiyo Yuden have also plunged in the past few months.