Amid concerns over the impact of the US midterm elections, the Nikkei is seeking a rebound after last week's sharp decline. Suzuki Hideyuki (鈴木 英之) of SBI Securities discusses trends in AI and semiconductor-related stocks and the outlook for individual stocks.
Against the backdrop of the US midterm election results, concerns arose over regulations on data-center construction, and the Nikkei fell sharply on the 6th of the previous week. Signs of a rebound emerged at the start of the week, however, and attention is focused on how the market will develop.
Suzuki Hideyuki (鈴木 英之), head of the Investment Information Department at SBI Securities, said that a Democratic administration would not necessarily curb data-center investment, noting that the broader trend of the AI era would remain unchanged. He also suggested that opportunities could emerge in equipment-related stocks serving data centers.
The Nikkei's forward P/E ratio fell to approximately 14.6 times, while its negative deviation from the 25-day moving average widened to approximately 12%. Although short selling on margin may continue in the short term, the market is thought to be entering a phase in which it will seek a rebound. The Nikkei could recover to around ¥65,000 toward year-end, while approximately ¥57,500 has been cited as a downside benchmark.
Among individual stocks, Advantest and Tokyo Electron, both AI- and semiconductor-related companies, are expected to rebound. Ryohin Keikaku and Saizeriya, which have strong earnings in the retail and restaurant sectors, are also expected to attract attention.