Kabuoku Taro (株億太郎), whose assets exceed ¥1 billion, pointed to Kioxia and other stocks as part of a comeback for blue-chip stocks, as well as Toyota Motor's attractive valuation. He suggested that buying of undervalued stocks could spread alongside movements in the Nikkei Average.
Part-time investor Kabuoku Taro (株億太郎), whose assets exceed ¥1 billion, discussed his stock selections in anticipation of a comeback for blue-chip stocks. Kioxia Holdings saw a sharp rise during the first half of the AI boom, but he suggested that buying could spread to undervalued stocks during the second half.
While saying that demand for AI and semiconductors would continue, Kabuoku said that the rise in stocks ignoring PER and PBR valuations had gone too far. He envisaged a phase in which buying of undervalued stocks would emerge after the Nikkei Average reached its high in June this year, and said he expected the index to target 100,000, with 70,000 as a stepping stone.
As stocks attracting attention, he cited groups of companies supporting the backbone of Japan's economy and said he wanted to add stocks that could continue to deliver growth and share-price gains. In particular, he viewed the current undervaluation of blue-chip stocks as an opportunity to build positions now.
Specifically, he cited Toyota Motor, praising its potential as one of the world's largest automakers. He said it was “abnormal” that the stock remained near its lows and that its PBR was below 1x despite expectations for lower profit in the current fiscal year, and said the stock offered investment appeal.