Archive · 29 Jul 2026
Goldman Says Japan's AI Stock Rout a Buying Opportunity
Goldman Sachs Japan Co.
thinks the recent drop in AI-related stocks in Japan is a good time to buy.
They believe strong earnings could bring investors back to these stocks.
The market has been volatile, but Goldman thinks the AI story isn't over.
Big companies like Kioxia and Furukawa Electric have seen big drops, but Goldman expects earnings to improve.
The weaker yen is also helping exporters.
Some traders think the selloff might be ending, but others are still worried about high valuations and competition.
Goldman Sachs Japan Co. sees the selloff in AI-related stocks as a buying opportunity.
Strong earnings could revive investor interest in semiconductor shares.
The Nikkei 225 has fallen 14% after a 44% rally through June.
Major companies like Kioxia and Furukawa Electric have slumped over 40%.
Goldman expects first-quarter net profits to rise about 26% from a year earlier.
- Who
- Goldman Sachs Japan Co., Bruce Kirk, Wall Street traders, UBS, Bank of America Corp.
- What
- A sharp selloff in Japan’s AI-related stocks creating a buying opportunity.
- When
- The selloff has occurred recently, with earnings season starting this week.
- Where
- Japan, South Korea, Taiwan.
- Why
- Concerns over valuations, corporate debt, competition, and crowded positioning.
Optimistic View
Pessimistic View
Market Correction
Optimistic View
The correction has created a buying opportunity with AI-linked shares at attractive levels.
Pessimistic View
Concerns over crowded positioning, rising corporate debt, and competition from Chinese rivals weigh on sentiment.
Earnings Focus
Optimistic View
Strong earnings could revive investor appetite for semiconductor shares.
Pessimistic View
Investors question whether lofty valuations and the AI investment boom can be sustained.
- Company
- Goldman Sachs Japan Co.
- Chief Japan Equity Strategist
- Bruce Kirk
- Market Index
- Nikkei 225
- Major Companies
- Kioxia Holdings Corp., Furukawa Electric Co., Advantest Corp., Tokyo Electron Ltd.
- Earnings Growth
- 26% from a year earlier
- Currency
- Japanese Yen