Memory chip maker Kioxia says it will hold back on further price hikes to avoid choking off AI spending, which is good news for data center buyers and a warning sign for the memory stock rally.

• Kioxia's CEO says memory prices have already climbed high enough and has told sales staff not to charge data centers more.
• NAND prices jumped 70% last quarter after more than doubling the quarter before, and another rise that steep looks unlikely.
• Kioxia denies any talks with SK Hynix about joint production, pointing to antitrust problems and its existing factory partnership with Sandisk.
• SK Hynix already holds bonds convertible into a 14% stake in Kioxia, which is why merger chatter keeps circulating.
• Kioxia stock is up 18 times in a year and briefly made it Japan's most valuable company, but it has since slipped on worries about overbuilding, debt, and competition.

Outlook: Prices should flatten from here as Kioxia, Sandisk, and SK Hynix pour trillions into new capacity, which raises the risk of a glut later.