With the Nikkei 225 in an upswing, Kubota Masayuki (窪田 真之) explains the 4 sectors he expects to grow in the years ahead and the 4 conditions for growth stocks. He also discusses the strengths of AI-agent-related businesses and the challenges of an excessive focus on hardware.
Against the backdrop of a buoyant Japanese market and a Nikkei 225 at record levels, Kubota Masayuki (窪田 真之), chief strategist at Rakuten Securities Economic Research Institute, outlines 4 sectors expected to grow in the years ahead and how to identify growth stocks. AI, energy, biotechnology and space are attracting attention. The article identifies 4 criteria for finding growth stocks: market growth potential, market share, barriers to entry and monetization potential. Looking ahead, it argues that the development of infrastructure supporting AI and the AI-agent sector will be important. It also suggests that the use of AI agents will be an area in which Japanese companies can demonstrate their core strengths.
At the same time, share prices of companies involved in “AI agents,” which use AI to create new businesses, have been rising only gradually. The article also notes that growth in hardware-related businesses alone will not lead to long-term profit generation. Kubota Masayuki (窪田 真之) says investors should not chase and buy stocks that are currently soaring.