AI and chip shares lead Nikkei rebound, up over 1,600 at one point

2026-07-09

Nikkei Rebounds on AI and Chip Gains, Jumps Over 1,600 at One Point

AI buying lifts the market

In Tokyo trading on the 9th, the Nikkei Stock Average rebounded and ended morning trade at 68,180.55, up 1,361.50 points, or 2.04%, from the previous day. Buying dominated from the start of the session, and the gain at one point topped 1,600 points. Buying spread to artificial intelligence and chip-related shares, supported by the previous day’s surge in U.S. semiconductor stocks.

U.S. chip rally spills over

In the market, the previous day’s rise in U.S. tech shares also spilled over into Japanese stocks. U.S. news site The Information reported on the 8th that China plans to allow major AI companies in China to buy Nvidia's H200 AI chip on a limited basis. Masato Yamamoto, chief analyst at Nissay Asset Management, said concerns over AI and semiconductor demand eased, confirming again the strength of demand.

Rebound buying in related shares

In Tokyo, AI and chip-related stocks led the advance. Advantest at one point rose 8.25%, while Tokyo Electron and Kioxia Holdings also attracted buying. Together, the three names pushed the Nikkei up by a little over 1,000 points.

Related shares had been undergoing a correction recently. Daiki Takei, strategist at Resona Holdings, noted that profit-taking had jolted the market as margin-buying positions accumulated to record highs. The rebound also made it easier for investors to step in with bargain hunting. On the 9th, Kioxia Holdings retook the top spot by market capitalization, overtaking Toyota Motor and Mitsubishi UFJ Financial Group. Kazuaki Shimada, chief strategist at IwaiCosmo Securities, said the stock had been oversold in the short term.

Meanwhile, tensions in the Middle East have again intensified. U.S. Central Command said on the 8th that it had begun additional strikes in retaliation for Iran's attack on commercial vessels sailing through the Strait of Hormuz. The attacks are now in their second straight day, adding uncertainty to talks aimed at ending the fighting between the two countries.

Buying focus shifts to AI

Advancers accounted for only 40% of issues on the Tokyo Stock Exchange Prime Market, while selling hit auto, construction and rubber shares. Toyota Motor fell 2.26%, Nissan Motor dropped 2.42%, and Yokohama Rubber declined 3.98%.

Shota Sando, equity market analyst at Tokai Tokyo Intelligence Lab, said funds are moving into AI and chip stocks, which are less exposed to the risk of higher crude prices. The market is also watching capital spending plans from hyperscalers. With earnings from Alphabet due on the 23rd, and from Meta and Microsoft on the 30th, Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, said the key to whether an AI rally led by semiconductor stocks returns will be earnings from U.S. hyperscalers. The focus is likely to be whether capital spending on AI by major tech companies is still expanding.

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