As the Nikkei 225 plunged, supply and demand deteriorated, particularly for AI- and semiconductor-related stocks. Kioxia fell sharply even after its 3-for-1 stock split in September, declining 15.8% from the previous day on the first day of November and 13.1% on 5 November.
The Nikkei 225 has been falling sharply, with declines in AI- and semiconductor-related stocks particularly pronounced. While some say earnings are not poor, the expansion of margin buying balances and deteriorating supply and demand may be delaying a recovery. AI- and semiconductor-related stocks in particular have been vulnerable to volatility in the short term because of the earnings season.
Kioxia Holdings, one of the stocks attracting attention, continued to fall sharply after its 3-for-1 stock split at the end of September, declining 15.8% from the previous day on the first day of November and 13.1% on 5 November. Its operating profit forecast announced with its interim results on 30 October projected substantial year-on-year growth, but fell short of consensus and was viewed negatively.
Margin buying balances are exceptionally high among AI- and semiconductor-related stocks, reaching ¥869.8 billion at the end of October, far exceeding those of other stocks. Investors holding physical shares may have the option of sitting tight, but leveraged positions are more likely to force investors to sell, and there are many periods when supply and demand drive share prices. Looking ahead, attention is expected to focus on the performance of a certain group of stocks that saw fund inflows in October, as investors consider how to navigate the November market.