The Nikkei Stock Average extended gains in the morning session, with buying spreading on the back of NVIDIA's strong earnings. Following the U.S. company's earnings announcement, buying increased in AI- and semiconductor-related stocks, pushing the Nikkei more than ¥600 higher.
The Nikkei Stock Average opened higher in extended gains on the Tokyo market on the morning of the 27th. It rose about ¥600 from the previous day, at one point climbing into the ¥66,900 range. The rise in NVIDIA's share price in after-hours trading following its earnings announcement improved investor sentiment, which was cited as one factor. Buying in AI- and semiconductor-related stocks led the advance in Tokyo, lifting the Nikkei.
NVIDIA reported revenue of $96.2 billion for the May–July 2026 quarter, up 2.1 times from the same period a year earlier, while net income rose 2.3 times to $59.6 billion. Both reached new quarterly records. At its earnings briefing, the company indicated that revenue for the full fiscal year ending January 2028 is expected to increase by about 70%. The growth rate exceeded market expectations, and the share price continued to rise in after-hours trading. In Tokyo, AI- and semiconductor-related stocks including Tokyo Electron and Ibiden also attracted buying on the favorable results.
Kioxia rose sharply, becoming a factor behind the Nikkei's advance. The morning edition of The Nikkei reported on the 27th that the company would build a new manufacturing building in Iwate Prefecture, with the investment expected to exceed ¥1 trillion. The stock attracted buying on expectations that the project would contribute to future earnings growth.
TOPIX, the Tokyo Stock Price Index, also extended gains. SoftBank Group, TDK and Fujikura rose, while Recruit and Sumitomo Metal Mining declined. NVIDIA's strong earnings and the performance of related stocks supported the broader market, complementing the Nikkei's advance.