On Friday, July 17th, 2026, Japanese memory maker Kioxia Holdings saw its shares plunge 16%, hitting the daily trading limit. This drop occurred as semiconductor stocks tumbled across Asian and U.S. markets. The selloff was driven by a broad decline in equity benchmarks throughout Asia, led by a sharp selloff in AI proxy stocks.

Investors are unwinding previously accumulated leverage on technology stocks due to growing concerns about the longevity of the AI-led rally. The market reaction reflects heightened caution among investors regarding the sustainability of recent gains in AI-related equities.

The selloff was documented across Asian markets, with Kioxia, headquartered in Tokyo, being notably affected. The decline in Kioxia's stock highlights the broader market trend of deleveraging in the tech sector amid uncertainty.

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