The correction in AI semiconductor stocks has run its course, and the market has begun to rebound. The Nikkei ended sharply higher, while earnings results from companies including ANA Holdings and MISUMI Group Inc. also attracted attention for suggesting that AI demand is spreading.
The Nikkei Stock Average rose sharply for a second straight session, closing at 66,300, up ¥2,342 from the previous day and recovering to a level not seen for about two weeks. At one point, more than 60% of stocks across the TSE Prime Market were rising, led by AI- and semiconductor-related stocks.
Market views are increasingly holding that inflows into AI semiconductor stocks have resumed as supply-demand adjustments have run their course. Nomura Securities' analysis indicated that, after returns from momentum strategies deteriorated in July, the market environment had become one in which stocks with strong earnings were more readily bought.
Following the April–June earnings announcements, EPS estimates and analysts' target prices rose from the end of June for many TOPIX 500 constituents. Advantest and Ibiden stood out among AI semiconductor stocks. Meanwhile, ANA Holdings' operating profit for April–June 2026 exceeded market expectations, supported by strong demand for international air cargo related to AI. MISUMI Group Inc. raised its earnings forecast for the fiscal year ending March 2027, citing strong demand for precision equipment. The spillover effects of AI will remain a focus in upcoming earnings announcements.