Japanese Chip Sector’s Earnings Show AI Appetite, Auto Slump
Employees work at a wafer fabrication factory in Hitachinaka, Ibaraki prefecture, Japan.
Photographer: Kazuhiro Nogi/AFP/Getty ImagesArtificial intelligence fueled a stronger-than-expected earnings season for Japan’s tech sector, with surging data-center demand prompting chipmakers and equipment suppliers to raise forecasts.
With most companies in the MSCI Japan Information Technology Index having reported, more than three-quarters beat analyst estimates, among the highest in the broader MSCI Japan Index. Profit across the index rose 35%, with Advantest Corp. among the biggest contributors, according to data compiled by Bloomberg.