Nikkei hits record closing high as AI stocks surge on Micron outlook

Tokyo's Nikkei 225 index marked a record closing high on Thursday, according to reports, with the benchmark surging over 4% during the session. The substantial rally was fueled by strong performance in artificial intelligence-related equities, particularly semiconductor manufacturers. The optimistic earnings forecast issued by U.S. chipmaker Micron Technology appeared to catalyze investor appetite for technology shares across the Japanese market. Major companies benefited from the buying momentum, with SoftBank Group, Advantest, and Tokyo Electron all posting gains. The enthusiasm for AI-exposed equities reflected broader investor confidence in the technology sector's growth prospects and the semiconductor industry's role in enabling artificial intelligence development.

The Nikkei's record-setting performance underscores the critical importance of semiconductor narratives to global equity markets. AI-related stocks have emerged as a significant market driver, with investors closely monitoring earnings forecasts and guidance from major chipmakers like Micron. The rally in Japanese technology names carries broader implications for regional markets and international indices with exposure to semiconductor and artificial intelligence themes. Conversely, energy stocks experienced weakness during the same session as oil prices continued their downward trajectory, demonstrating the divergence between technology-led growth stories and traditional commodity-linked sectors. This bifurcation reflects the ongoing market rotation between emerging technologies and conventional energy investments.

Source: Markets-Economic Times