Could a US Stock Listing Put Japan's Kioxia on the AI Map?

A Japanese company called Kioxia makes computer chips that store data — and its stock price has soared this year. In fact, Kioxia's stock has jumped 456% in 2024, making it the top gainer on Japan's main stock index, the Nikkei 225. Now, Kioxia is thinking about listing its shares on a US stock market. A fund manager who runs a $14 billion AI investment fund says that move could put Kioxia in the spotlight for global investors.

Sebastian Thomas manages a large investment fund at a company called Voya Investments. His fund focuses on artificial intelligence, or AI, and holds about $5 billion in Japanese investments. Right now, Kioxia is not in his fund. Thomas says the main reason is something called liquidity — which means how easy it is to buy and sell a stock quickly without affecting its price too much.

Thomas explained that being listed in the US could fix that problem for Kioxia. He pointed to a South Korean chipmaker called SK Hynix as an example. When SK Hynix listed its shares on the Nasdaq stock exchange in July, it became much easier for funds like Thomas's to invest in it. 'It's an issue of finding ones that have sufficient liquidity where we can invest,' Thomas told Reuters.

Kioxia announced in May that it was preparing to list something called American Depositary Shares, or ADS. These are a special type of share that lets people in the US invest in foreign companies more easily. Kioxia hopes this will help it attract a bigger group of investors from around the world. A US listing would make the company's stock available to many more buyers.

Voya's AI fund has been very successful since it launched 10 years ago. It has given investors about 600% in total returns over that time. The fund invests in companies that build AI technology, companies that make AI-powered products, and even companies in other industries — like healthcare — that use AI to improve their work.

Some of the biggest names in the fund include Nvidia, a chipmaker that is the fund's largest investment, and Eli Lilly, a drug company that uses AI in its research. Voya has also invested in other memory chip makers besides Kioxia, including SK Hynix and Micron Technology. Thomas said that when companies list in the US, it makes it easier for funds like his to get involved. 'We tend to skew a bit more liquid and larger,' he said.