The euphoria surrounding artificial intelligence has the Japanese stock market firmly in its grip at the beginning of the new week.
• Japan’s AI stocks on the rise since NVIDIA’s balance sheet
• SoftBank and semiconductor companies continue to benefit from global tech euphoria
• Hope for further increasing AI investments
After numerous Japanese tech stocks rose sharply last week, the upward movement continued on the first trading day of the new week. Semiconductor and technology stocks in particular continue to be the focus of international investors: On the Tokyo stock exchange, the shares of chip test specialist Advantest rose by 3.39 percent to JPY 27,755 on Monday, while Renesas Electronics rose by 6.26 percent to JPY 4,297. Tokyo Electron and Rohm also recorded strong price increases of 4.72 percent to 52,180 JPY and 9.47 percent to 5,030 JPY respectively on Monday. The securities of the investment and technology holding SoftBank Group are also in demand, ultimately rising by 4.63 percent to JPY 7,070. They broke their old all-time high, which was set at 6,923.8 yen.
AI boom as a global price driver
The main reason behind the rally is the markets’ continued enthusiasm for applications relating to artificial intelligence. Since the record numbers from the US chip manufacturer NVIDIA and the increasing investments in data centers worldwide, the semiconductor industry is considered one of the biggest winners of the AI age. Investors are increasingly betting that the need for high-performance processors, memory solutions and specialized chip manufacturing will continue to rise massively in the coming years.
Not only the large US corporations are benefiting from this, but increasingly Asian suppliers and technology companies are also benefiting. Japanese companies in particular are considered strategically important because they supply key technologies for the global chip industry. According to several market observers, international investors are currently specifically looking for alternatives to the already highly valued US tech stocks and are increasingly finding these in Japan.
Advantest and Tokyo Electron at the center of AI infrastructure
Advantest plays a key role in this. The company is a global leader in test systems for high-performance chips and works closely with major AI chip manufacturers. If the production of modern AI processors increases, the need for high-precision testing procedures automatically increases. This is precisely why Advantest is now seen as an indirect beneficiary of the global AI boom.
The situation is similar with Tokyo Electron. The group supplies machines and production systems for semiconductor production and thus benefits from every expansion of new chip factories. Industry analysts often speak of so-called “pick-and-shovel” companies – i.e. companies that do not develop AI themselves, but provide the technological infrastructure for it. These companies are currently considered particularly attractive on the financial markets because they benefit from the industry’s long-term investment cycle.
SoftBank is betting on the future of AI
The SoftBank Group is also the focus of attention. The holding company of the Japanese investor Masayoshi Son is now perceived by many investors as a kind of AI investment company. The background is the close connections to important future companies such as Arm Holdings as well as the investments in the OpenAI and other AI initiatives. After positive news from the US technology sector, investors often buy SoftBank shares.
Carolin Ludwig, editorial team at finanzen.net
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