Janus Henderson Japan Opportunities Fund on Kioxia Holdings Corporation
Thesis
Janus Henderson initiated a holding in Kioxia during the quarter at a valuation it considered attractive. Kioxia makes NAND flash memory and solid-state drives, with a strong competitive position in high-capacity NAND. The manager expects the worldwide shortage of memory chips to support the company as AI-driven investment increases demand throughout the semiconductor supply chain. It nevertheless recognises the semiconductor sector is cyclical and stresses valuation discipline.
“we initiated a position in Kioxia, a manufacturer of NAND flash memory and solid-state drives, at a level we considered attractive.”
Key risks
- The cyclical nature of the semiconductor and memory markets
- A reversal of the global memory chip shortage
- Volatility in AI-related shares and the semiconductor investment cycle