NTT's share price rose 6.8% from the previous month-end as August began, while IT stocks, led by AI-related names, have become increasingly active. Attention is focused on the possibility that the rise in AI picks-and-shovels stocks and software companies using AI will continue as the AI market enters a new phase.
In Japan's market last week, a rebound gathered pace on the back of strong earnings news from internet-related stocks, while AI semiconductor stocks continued to rise. Companies providing AI-powered solutions and stocks related to AI data centers attracted buying, and NTT's rise also provided a tailwind for the market.
With the release of the U.S. FOMC minutes due this week, renewed buying of AI-related stocks is expected to continue. AI picks-and-shovels stocks and software companies using AI are expected to drive market activity.
Among individual stocks, Advantest rose 14.5% to set a new all-time high, while Lawson Dotcom surged 57.0% on strong earnings and Medley jumped 28.1%. Expectations of increased AI-related investment by NTT and SoftBank are also supporting the market.
In the domestic market, caution toward economically sensitive stocks has increased amid higher oil prices and growing expectations of interest-rate hikes. However, the acceleration of AI-related investment could support the IT sector.
At the same time, concerns about higher oil prices and stagnation among economically sensitive stocks remain. The recovery in demand for AI infrastructure and the expansion of data-center investment are likely to be key areas of focus going forward.