[Edaily Reporter KIM JUNG YOU ] The Nikkei 225 Average (Nikkei Index) closed at 67,777.52 yen on the Tokyo Stock Exchange on the 13th, down 1.82% (1,253.40 yen) from the previous trading day, amid skepticism over investments in artificial intelligence (AI) infrastructure and concerns about intensifying competition with Chinese memory semiconductor companies, according to a report by the Nikkei.

According to the Nikkei, the Tokyo stock market was weighed down by a wave of selling concentrated on AI and semiconductor-related stocks, despite a string of solid earnings reports from major companies. The Nikkei opened lower right from the start of trading and gradually extended its losses, at one point plummeting by more than 1,900 yen. Japan’s leading semiconductor stocks, such as Advantest (down 2.90%) and SoftBank Group (down 8.49%), dragged the index down.

The Nikkei newspaper noted that the decline in the Nikkei index that day was primarily triggered by cautionary remarks from CEOs in the global semiconductor industry regarding AI investments. Intel CEO Lipbu Tan pointed out at an event held in Singapore on the 12th (local time) that “the key challenges ahead are funding, financing costs, and return on investment (ROI),” while Broadcom CEO Hawk Tan also stated that “capital could be the biggest constraint.”

In fact, as hyperscalers—including Big Tech companies—have issued large-scale corporate bonds to build data centers and procure chips, upward pressure on interest rates has intensified. Analysts suggest that concerns over whether AI investments will be able to recoup the rapidly rising financing costs have dampened market sentiment.

Kazuyuki Muramatsu, Head of the Investment Management Division at WaCapital, told the Nikkei, “While AI demand is stronger than expected, creating a situation where companies cannot halt their investments, investors are deeply anxious about the prospect of delayed returns on their investments,” adding, “Japanese companies with strengths in manufacturing equipment were swept up in the sell-off.”

Among individual stocks, the sharp plunge in Kioxia Holdings, a major NAND flash memory company, stood out. Kioxia’s stock collapsed, plummeting 13.28% that day.

Compounding this, reports emerged that China’s leading DRAM manufacturer, Changxin Memory Technology (CXMT), is pushing ahead with the development of new high-capacity products, further fueling concerns about oversupply and price competition in the global memory market.

Consequently, following Micron Technology’s 3.88% decline on the New York Stock Exchange the previous day, shares of SamsungElectronics(005930)fell more than 7% and SK hynix(000660)dropped more than 10% in South Korea on the 13th. Kioxia, whose core business is NAND—used for long-term data storage—was also unable to escape the fallout.

Market experts expect that excessive market anxiety will gradually subside as global semiconductor companies—including ASML of the Netherlands on the 14th and TSMC of Taiwan on the 15th—report their earnings, followed by earnings reports from Japanese companies next week.