As the focus on earnings-driven investing intensified and funds flowed into small and mid-cap stocks that had lagged, Ferrotec, Workman, Nakanishi, QD Laser, and Mirait One came into focus. Buying interest in semiconductor and AI-related stocks intensified as the Nikkei Average recovered to around 70,000.
The Nikkei Stock Average rebounded from its July low and rose to levels approaching 70,000. Even after the earnings season had largely run its course, strong earnings at semiconductor and AI-related companies were confirmed in the U.S. market, spreading to the Japanese market and driving buying interest, particularly in stocks with a significant impact on the index.
Against this backdrop, the market is expected to place renewed emphasis on earnings as an investment catalyst. Stocks that posted strong results but were sold on the perception that the news was already priced in, as well as undervalued stocks, may return to investors' watchlists. As a recovery of the Nikkei Average to 70,000 comes within reach, funds may also concentrate in small and mid-cap stocks that have lagged.
Five stocks were cited as being in focus: Ferrotec, Workman, Nakanishi, QD Laser, and Mirait One. Their respective business areas and recent developments were also summarized. Ferrotec's strengths include vacuum seals using magnetic fluids, and expectations for growth are rising alongside increased demand for AI-related equipment. Workman is expanding strategic products such as recovery wear, building on functional apparel including waterproof and cold-weather clothing. Nakanishi's core business is dental equipment, and with a stock split already announced, its uptrend may continue. QD Laser is expected to turn profitable through the mass production of next-generation light sources and quantum dot lasers. Mirait One is pursuing growth in non-telecommunications fields such as data centers and EV charging.