Published June 4th, 2026 - 09:05 GMT
ALBAWABA - In what seems like a movie script prelude to an AI bubble burst, Japan’s stock market, Nikkei 225, tops 68,000 for the first time, driven by intense investment in the AI industry.The AI growth frenzy is showing no signs of slowing down as markets and companies break capital records year after year. Japan's stock market rose 3% on Wednesday and 33% since the start of 2026.“Investor enthusiasm over the AI boom is helping drive Asian equity markets higher, while strong demand for high-end chips has seen the top semiconductor companies in Taiwan and South Korea rally strongly, this is also benefiting Japanese markets, which are also getting some tailwind from a weak yen.” Khoon Goh, head of Asia research at ANZ, told Al Jazeera.Companies in the semiconductor business led the charge with Japan’s biggest manufacturer, Tokyo Electron, soaring 14% in the morning. Additionally, Advantest and Shin-Etsu Chemical, both integral in the semiconductor industry rose 5.5% and 4% respectively.Softbank, heavily invested in the AI industry, overtook Japan’s giant - Toyota - on Monday to become Japan’s biggest company.🚀 JAPANESE STOCKS JUST HIT ANOTHER ALL-TIME HIGH.Nikkei 225 surged 2.6% today, adding ¥25.7 TRILLION to Japan’s stock market. pic.twitter.com/2gIpJqBmje— Crypto Rover (@cryptorover) June 3, 2026 All this is fueled by insatiable demand for AI chips not just in Japan but in markets around the world with three memory chip makers worldwide entering the $1 trillion club of market capitalization; the club housing only 17 companies all but five of which are based in the United States.Riding blind to the concerns raised by investors on the sustainability of the unprecedented growth, many companies are continuing to invest more in AI than ever, with $800 billion expected to be spent by US tech giants, according to Goldman Sachs. With Google’s parent company Alphabet announcing that it would sell $80 billion worth of shares to invest in AI and AI related industries.
