Kioxia ADR plunges 20% as US memory stocks extend selloff

Kioxia Holdings Corp. ADR plunged nearly 20% in pre-market trading Tuesday as a selloff in US-listed memory and storage stocks deepened ahead of Micron Technology Inc.'s earnings.

The move follows a period of extreme gains for the memory sector. SanDisk Corp. surged 11% and Western Digital Corp. rose 7% on June 18 after Apple Inc. Chief Executive Officer Tim Cook said memory price increases were "unavoidable," confirming the supply crunch at the heart of this year's memory stock rally.

Technical indicators had been signaling overbought conditions across the complex. Western Digital's relative strength index stood at 78 and Seagate Technology Holdings Plc's at 74 as of Monday's close, according to market data. The analyst consensus target on Micron stock sits at $945.60, well below its current price of around $1,199.

The selloff comes one day before Micron's fiscal third-quarter earnings report on Wednesday, a key test for the memory supercycle thesis that has driven the sector's gains this year. A miss on guidance could trigger further selling across the group, while a strong report may restore confidence.

The memory complex has been one of the best-performing trades of 2026, driven by surging demand from AI data centers and constrained supply. Micron shares are up 298% year to date through June 18, while SanDisk and Western Digital have posted triple-digit gains. Needham raised its Micron price target to $1,550 from $500 on Monday, maintaining a Buy rating and arguing that fundamentals have continued to strengthen over the past 90 days.

Kioxia, the Tokyo-based NAND flash memory maker, had participated in the broader memory rally before Tuesday's pre-market reversal. The nearly 20% drop in its ADR suggests investors are rotating out of the sector ahead of what could be a make-or-break earnings report for the group.

This article is for informational purposes only and does not constitute investment advice.