Japanese chip and technology shares climbed sharply on Thursday as local markets caught up with a broader global advance in technology stocks driven by renewed optimism around artificial intelligence.
Market sentiment received an additional boost from signs of reduced U.S.-Iran tensions after Washington paused a plan to provide escort missions for commercial vessels through the Strait of Hormuz. That development helped risk appetite alongside the technology-led momentum.
SoftBank Group Corp. (TYO:9984) emerged as the session's top mover in the sector, rallying 18% to reach the day's upper trading limit. The conglomerate's deep exposure to technology via investments that include OpenAI and chip designer Arm was cited by market participants as a key reason for the stock's strength.
Earlier in the week, AMD (NASDAQ:AMD) released quarterly results that many investors characterized as a watershed for its business mix. The chipmaker stated that AI data centers have become its largest source of revenue and provided a constructive outlook for the segment. Those comments reverberated across chip stocks globally and helped underpin demand for Japanese semiconductor names.
Among Japan-listed chipmakers, Renesas Electronics Corp (TYO:6723), Advantest Corp. (TYO:6857), Tokyo Electron Ltd. (TYO:8035) and Lasertec Corp (TYO:6920) all registered strong gains, with moves in the range of 4% to 13%. Renesas was the best performer within that group during the session.
Japanese technology firms broadly posted outsized gains as markets reopened after the Golden Week holiday, reflecting the larger rally overseas in tech equities during the break. The combined strength across chips and broader tech helped push the Nikkei 225 index up nearly 6% to a record high.
The market reaction on Thursday underscores how earnings reports and geopolitical headlines can act together to shift investor positioning in technology and semiconductor sectors. Trading volumes and price moves in major tech-related stocks were elevated as global and domestic catalysts aligned.
Investors will be watching whether the AI-driven demand narrative signaled by AMD and the temporary cooling of geopolitical risk sustain this momentum in coming sessions.