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

Nikkei Rally Surges Past Global Indexes on AI Momentum

Japan's benchmark Nikkei index has delivered a stunning 37% gain, establishing a Nikkei record high that significantly outpaces major indexes in the United States, Europe, and China 1

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. The latest surge saw the index close 4.6% higher at 72,366.34, snapping two straight sessions of declines, while the broader Topix rose 1.33% to 4,016.47 2

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. This remarkable performance reflects strong demand for AI processors and related infrastructure, with investor sentiment shifting from established tech giants to specialized component suppliers.

Chipmakers Drive Market Gains Following Micron's Forecast

The recent spike in AI stocks was triggered by Micron's optimistic earnings forecast, which sent ripples through Asian markets. The U.S. memory chipmaker, a key supplier for Nvidia AI processors, forecast quarterly profit and revenue well above expectations and announced that customers had committed $22 billion to secure memory chip supply 2

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. SoftBank Group reversed course to jump 8%, while Advantest surged 15% and Tokyo Electron rose 7.78% 2

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. Memory chipmaker Kioxia advanced 12.27% and has overtaken Toyota Motor this month to become Japan's most valuable company 1

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Three Waves of AI-Related Investments Reshape Market

The Nikkei rally has evolved through distinct phases, each expanding the circle of beneficiaries. The first wave centered on familiar names like SoftBank Group, Advantest, and Tokyo Electron. A second leg brought in suppliers including fiber-optic cable makers Fujikura and Furukawa Electric. Now a third wave is spreading to components and power infrastructure essential for AI data centers 1

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. Murata Manufacturing and Taiyo Yuden, leading makers of multi-layer ceramic capacitors used to regulate power in AI servers, have emerged as the latest engines driving the index forward. Shares of Murata Manufacturing have risen 268% this year, while Taiyo Yuden has surged 438% 1

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AI Data Centers Fuel Demand for Component Suppliers

Ibiden, a supplier to AI bellwether Nvidia, has climbed 292%, while Panasonic Holdings hit a record high after announcing plans to mass produce battery cells for AI data centers at its Kansas factory 1

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. "This is just the beginning of their rally. Investors will continue to hunt stocks that are related to AI data centers," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities 1

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. On Thursday, makers of AI data center materials advanced sharply, with Murata Manufacturing and Taiyo Yuden climbing 7.21% and 11.2%, respectively 2

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Concentration Risk Looms Over Global Semiconductor Indexes

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 Manufacturing, Sony Group, and Kyocera, that weighting rises to 35% 1

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. This concentration carries risk, particularly as signs of market overheating emerge. The Philadelphia semiconductor index, a benchmark for U.S. tech shares, traded at more than 70% above its 200-day average as of last week 1

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. "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" 1

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