Japanese Chip Stocks Rally as Micron's Strong AI Outlook Boosts Sector

Japanese semiconductor stocks posted significant gains on Thursday, lifted by a positive outlook from U.S. memory-chip maker Micron Technology that signaled robust, ongoing demand for hardware powering artificial intelligence.

The rally underscores the global semiconductor industry's interconnectedness, where upbeat forecasts from a major player like Micron often serve as a bellwether for its suppliers and partners across the supply chain.

Micron Forecast Ignites AI Optimism

The catalyst for the rally was Micron's latest financial report and outlook, which pointed to strong demand for its memory products, particularly those used in AI data centers. According to the company, demand for its high-bandwidth memory (HBM) continues to outpace available supply.

Micron also reported that its long-term supply agreements had increased to $32 billion, up from $22 billion in June. The company's revenue forecast for the upcoming quarter surpassed market expectations, further bolstering investor confidence in the sector's growth trajectory.

Widespread Gains in Tokyo

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The positive sentiment from Micron's report translated into a broad-based rally among Japanese technology firms. The buying was concentrated in companies involved in chip manufacturing equipment, testing, and electronic components.

Notable movers included:

• Lasertec (TYO:6920), which surged by 10%.
• Advantest Corp (TYO:6857), a maker of chip-testing equipment, jumped nearly 8%.
• Tokyo Electron (TYO:8035), a major semiconductor manufacturing equipment supplier, added 6%.
• Other significant gainers included Taiyo Yuden (TYO:6976), up 8.3%, and Murata Manufacturing (TYO:6981), which advanced 7.4%.

The widespread gains in the tech sector helped lift Japan's benchmark Nikkei 225 index by 2.8% during the session.