NVIDIA Earnings, August 2026 | Why Japanese Semiconductor Stocks Did Not Rally Broadly Despite Strong Results

NVIDIA’s second quarter of the fiscal year ending January 2027 showed that investment in AI computing infrastructure remains strong. Revenue came to $96.221 billion, adjusted EPS was $2.22, and data center revenue was $89.0 billion, all above market expectations. Revenue guidance for the August–October quarter is centered on $108.0 billion, with a range of plus or minus 2%, pointing to the first-ever quarterly revenue of more than $100 billion.

In the Tokyo market on 27 August, Japanese stocks did not rally across the board despite NVIDIA’s strong results. Kioxia Holdings ended 5.0% higher, Tokyo Electron gained 0.9%, while Advantest and Disco fell 3.05% and 1.37%, respectively.

The factors cited for the movements in Japanese stocks after NVIDIA’s results include the extent to which expectations had already been priced in, conditions in the memory market, concerns over US interest rates and inflation, and differences in business exposure. In particular, the impact of NAND prices and concerns about component shortages were identified as factors influencing the response of semiconductor equipment stocks.

It is important to distinguish NVIDIA-related exposure from the profit drivers of each stock, while also bearing in mind that NAND and HBM are driven by different supply-and-demand factors. Kioxia is not an HBM supplier and is focused primarily on NAND, while Advantest is mainly exposed to tester demand, Tokyo Electron to investment in front-end equipment, and Disco to demand for cutting and grinding equipment.

The factors to watch going forward in assessing the impact of NVIDIA’s results on Japanese stocks include Rubin’s share of revenue, trends in gross margins, supply constraints, sales to the US and China, and the possibility of resuming sales to China.