Nikkei rally hits record high as AI stocks and chipmakers surge on Micron's optimistic forecast

Nikkei's record rally shifts gears as investors chase next AI darlings

TOKYO, June 26 (Reuters) - Japan's record-breaking Nikkei rally is no longer about AI -- it's about who's left to buy. While AI euphoria is lifting shares around the world, the 37% gain in Japan's benchmark Nikkei index has far outpaced major indexes in the United States, Europe and China. The first AI wave in Japan was driven by now-familiar names like SoftBank Group (9984.T), opens new tab, Advantest (6857.T), opens new tab and Tokyo Electron (8035.T), opens new tab. A second leg brought in suppliers including fibre-optic cable makers Fujikura (5803.T), opens new tab and Furukawa Electric (5801.T), opens new tab. Now a third wave is spreading in the components and power infrastructure that data centres cannot run without. Murata Manufacturing (6981.T), opens new tab and ⁠Taiyo Yuden (6976.T), opens new tab, leading makers of multi-layer ceramic capacitors (MLCCs) used to regulate power in AI servers, have emerged as the latest engines of the index's advance. Shares of Murata have risen 268% so far this year. Taiyo Yuden has surged 438%, trailing only memory maker Kioxia (285A.T), opens new tab, which overtook Toyota Motor (7203.T), opens new tab this month to become Japan's most valuable company, in gains on the Nikkei. "This is just the beginning of their rally. Investors will continue to hunt stocks that are related to AI data centres," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities. Ibiden (4062.T), opens new tab, a supplier to AI bellwether Nvidia (NVDA.O), opens new tab, ⁠is another high-flyer, up 292%. The latest joiner is Panasonic Holdings (6752.T), opens new tab, whose shares hit a record high this month after the company announced a plan to mass produce battery cells for data centres at its factory in the U.S. state of Kansas. Chip-related names such as Tokyo Electron, Advantest and Kioxia account ⁠for about 25% of the Nikkei's value, according to Takamasa Ikeda, senior portfolio manager at GCI Asset Management. Together with companies like Murata, Sony Group (6758.T), opens new tab and Kyocera (6971.T), opens new tab, that weighting goes up to 35%. That concentration ⁠carries risk. The Philadelphia semiconductor index (.SOX), opens new tab, a benchmark for U.S. tech shares, traded at more than 70% above its 200-day average as of last week, a sign of overheating. "It might ⁠be hard for the SOX index to maintain its current momentum in the mid-to-long term," Ikeda said. "And if there's a correction in the SOX, the same fate will be inevitable for the Nikkei." Reporting by Junko Fujita; Editing by Rocky Swift and Christopher Cushing Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Asian Markets Junko Fujita Thomson Reuters Reports on Japanese financial markets, with particular interest in derivatives.

Nikkei marks record closing high as AI shares rally on Micron forecast

Tokyo's Nikkei index soared to a record high, surging over 4% on Thursday. This significant jump was fueled by a powerful rally in AI-related stocks, particularly chipmakers, following an optimistic earnings forecast from U.S. firm Micron. Investors eagerly bought back into technology shares, driving major companies like SoftBank Group, Advantest, and Tokyo Electron higher. Energy stocks, however, experienced a downturn as oil prices continued to fall. Japan's Nikkei share average rose more than 4% on Thursday to notch a record closing high, as AI-related stocks surged after U.S. memory chipmaker Micron's upbeat quarterly profit and revenue forecast. The Nikkei closed 4.6% higher ⁠at 72,366.34, ⁠snapping two straight sessions of declines. The broader Topix rose 1.33% to 4,016.47. US MarketsPowered By As on 25 Jun 2026, 01:30 AM IST S&P 500 Top Gainers Builders FirstSource85.41(11.31%) Mohawk Industries119.09(9.60%) IQVIA Hldgs185.62(8.37%) Charles River202.10(8.31%) Gainers" S&P 500 Top Losers Coterra Energy32.56(-8.62%) Apollo Asset Management122.60(-6.13%) Blackstone112.99(-5.90%) Robinhood Markets97.19(-5.87%) Losers" Micron, a key supplier for Nvidia AI processors alongside South Korean chipmakers, forecast quarterly profit and revenue well above expectations and said customers had committed $22 billion to secure memory chip supply. "The Nikkei's sharp gain is simply due to Micron's earnings," said ⁠Takamasa Ikeda, a senior portfolio manager at GCI Asset Management. "The U.S. semiconductor index, which is highly correlated with the Nikkei, ⁠will probably rise later in the day." On Thursday, SoftBank Group reversed course to jump 8%. "Investors tried to lock in profits in technology stocks in the previous session ahead of Micron earnings, but they scooped up the shares today, and SoftBank Group was one of them," said Daisuke Hashizume, a senior strategist at Daiwa Securities. Chip-testing equipment maker Advantest jumped 15% and chip-making equipment maker Tokyo Electron rose 7.78%. Memory chipmaker Kioxia advanced 12.27%. Makers of AI-data centre materials advanced: Murata Manufacturing and ⁠Taiyo Yuden climbed 7.21% and 11.2%, respectively. Defying the broader strength, energy-related stocks fell after oil prices extended declines. The mining sector dropped 3.18%, with Inpex down 3.35%, while oil refiners fell 1.38%. Japanese shippers slipped 2%, with Kawasaki Kisen down 3.87%. Of the more than 1,500 stocks on the Tokyo Stock Exchange's prime market, 66% rose, 30% fell and 3% were flat.