AI valuation concerns rise! Kaidixia's stock in Japan plunges 12%, facing a $2.3 billion reduction by its major shareholder.

Under the influence of a news report, Kai-Xia's stock plunged by more than 12% in the Japanese stock market. The news stated that an entity supported by Bain Capital is planning to sell its shares in this Japanese storage chip manufacturer, sparking concerns about the overvaluation of global artificial intelligence-related companies. According to a statement released by the lead underwriter Goldman Sachs, BCPE Pangea Cayman LP plans to sell 36 million shares of Kai-Xia's stock to overseas investors. Based on the closing price of 9,853 yen on Tuesday, this transaction is estimated to be worth approximately 355 billion yen (about 2.3 billion US dollars). Kai-Xia's stock has benefited from expectations of rapid growth in demand for artificial intelligence, leading to its stock price hitting a historical high earlier this month. Despite a subsequent decline in stock price, it is still several times higher than the initial public offering price of 1,455 yen per share. However, the quarterly performance announced by this NAND chip manufacturer later did not meet market expectations, leading to a significant drop in its stock price.