Japan Markets ViewAI-related Stocks Attract Investors as Represented by Softbank G (9984) and AI inside (4488)

 

[Nikkei QUICK News] On June 13, the Nikkei 225 surpassed the milestone of 33,000 on the Tokyo stock market. The most notable rise was in stocks related to artificial intelligence (AI). In response to the spread of generative AI, such as “Chat GPT,” companies in Japan and overseas are working on development. In the stock market, AI-related stocks have been remarkably the focus of speculative buying.

 

Note: The increase rates compare the closing price on June 12 with the price at 2:00 p.m. on June 13.

 

The stock price of SoftBank Group (SBG, 9984) rose 463 yen (7.7%) from the previous day to 6,458 yen on June 13, hitting a new year high. On June 12, Sam Altman, CEO of US-based OpenAI, stated that he had met with Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SBG. Although he did not disclose any specific collaboration plans, many investors bought SBG shares in anticipation of SBG’s possible collaboration with OpenAI.

 

The rally in SBG shares was triggered by the announcement on May 29 by its subsidiary SoftBank (9434). The company unveiled its collaboration with U.S. semiconductor giant NVIDIA to construct a data center for generative AI and for the 5G and 6G high-speed communication standards. Tomoaki Kawasaki, a senior analyst at IwaiCosmo Securities, commented, “The announcement of the collaboration with NVIDIA has led many to view SBG as one of the generative AI-related stocks.”

 

The Nikkei 225 rose for the ninth consecutive week through June 9. The top gainer among the Nikkei 225 constituents over the same period was Advantest (6857), whose stock price rose 59% from April 7 to June 9. Advantest is involved in semiconductor test systems, and investors have been attracted to the company based on the expectation of higher demand for its test systems amid the growing focus on generative AI.

 

AI-themed speculative buying is continuing in the Japanese emerging market as well. On June 13, the stock price of AI inside (4488) rose to the upper end of the price limit (limit high) on the Tokyo Stock Exchange Growth Market. The company, which supports corporate AI operations, announced on June 12 the launch of a platform with the basic functions required for AI development and implementation built in. In addition, Brains Technology (4075), which provides AI-based software services saw its stock price rise notably.

 

The market is widely expected to continue to focus on AI-related sectors. Whether or not AI becomes an established theme will be one of the keys to the continued rise of Japanese stock prices.

 

(Reported on June 13)

 

 

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