AI and semiconductor stocks drove the market in the first half of the year, sending the Nikkei 225 to new highs, but the index has plunged since June and is now down approximately 13% from its peak. The market capitalizations of SB Group and Kioxia have attracted attention, while experts have pointed to the possibility of an AI bubble bursting.
In the Tokyo stock market during the first half of the year, buying concentrated in AI- and semiconductor-related stocks on expectations for AI, and the Nikkei 225 traded at successive highs. It has since fallen sharply from its peak, with the decline in share prices becoming pronounced. Experts are closely watching AI-related stocks.
The Nikkei 225 reached a peak of ¥72,831 on 22 June, and stood at ¥63,268 at the close on 27 October, down approximately 13% from its record high. AI- and semiconductor-related stocks account for approximately 40% of the Nikkei 225 constituents, and some have pointed out that semiconductor stocks have supported the market.
In June, the market capitalizations of SB Group and Kioxia reached ¥48 trillion and ¥44 trillion, respectively, attracting attention because they exceeded even Toyota's scale. Both stocks have recently fallen by more than half. SBG reached a year-to-date high of ¥9,074 in early June, while Kioxia reached a record high of ¥111,270 in late June.
Experts have pointed to the possibility of a broad sell-off in US AI and semiconductor stocks, spillover into Japanese semiconductor-related stocks, and excessive investment in the AI boom followed by a correction. Some analyses also cite developments surrounding expanding data-center demand and tight semiconductor supply and demand.