PomegraNikkei Falls 2.65% as AI Spending Worries Hit Chip Stocks
Why is the Nikkei down today?
Japan's Nikkei 225 (^N225) fell 2.65% to 62,907.84 on Thursday as chip stocks sank on worries that AI spending may slow in 2027.
Key numbers
| Nikkei 225 close | 62,907.84-2.65% |
|---|---|
| Tokyo Electron | ¥9,499-6.5% |
| SoftBank Group | ¥4,305-6.9% |
| Kospi close | 5,533.77-3.5% |
| UBS 2027 AI capex forecast (per [6]) | $1T+vs $600B+ in 2026 |
What happened
Japan's Nikkei 225 (^N225) fell 2.65% to 62,907.84 on Thursday as chip stocks sank on worries that AI spending may slow in 2027. Early on, chip stocks were giving back Wednesday's gains: Tokyo Electron was down 4%, Screen Holdings 6% and SoftBank Group 3%. By the close, Tokyo Electron had lost about 6.5% and SoftBank about 6.9%. Investors are asking whether companies will keep spending heavily on AI computing next year.
Why it matters
The Nikkei 225's drop matters because chip-equipment makers such as Tokyo Electron carry a big weight in it, so their slide drags the whole index down. These companies sell the machines used to make AI chips, so doubts about AI spending hit their sales outlook first. Rising oil prices after reports of damaged tankers near the Strait of Hormuz added to the nervousness.
Who this affects
- MarketbearishMedium impact
- Asian stock investors hit as chip shares slid.
- CompanybearishHigh impact
- Tokyo Electron and SoftBank shareholders saw sharp one-day losses.
- CompetitorsmixedMedium impact
- Screen and Lasertec fell; Sony and Trend Micro rose.
- IndustrybearishMedium impact
- Chip-equipment makers face doubts over AI spending in 2027.
Nikkei 225 vs Kospi, Hang Seng
| Nikkei 225^N225 | 62,907.84 | -2.65% |
|---|---|---|
| Kospi^KS11 | 5,533.77 | -3.5% |
| Hang Seng^HSI | 22,934.68 | -3.0% |
As of 2026-10-22
How we got here
Japanese chip shares rally, with the Nikkei up 0.9% on Wednesday.
Early Thursday, Nikkei is down 0.8% as Tokyo Electron falls 4.1% and Screen 6%.
Oil jumps on reports of damage to seven tankers in the Strait of Hormuz.
Nikkei closes down 2.65% at 62,907.84, its lowest close since July 30.
What to watch
- Whether UBS's forecast of over $1 trillion in 2027 AI spending holds as firms report resultsQ4 2026
- Chinese chip-equipment demand after early purchases ahead of tighter rulesQ4 2026
- Oil prices and Strait of Hormuz tanker reports weighing on Asian shares2026-10-23
Educational content only. Not investment advice.
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