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Goldman flags Japan AI stock selloff as a buying opportunity

Goldman’s Japan chief equity strategist said the correction has lowered the earnings bar for AI-linked shares as Japan’s chip-heavy Nikkei 225 fell 14% from its June peak.

Reported · Written up by our desk · Asia

Goldman Sachs Japan says the recent selloff in Japan’s AI-related stocks is creating an opportunity, arguing the trade is not “broken” and that stronger company results could draw investors back to semiconductor exposure.

In an interview, Goldman’s Japan chief equity strategist Bruce Kirk said the correction has lowered what investors need to see from earnings, noting that investors should focus on fundamentals if geopolitical conditions do not deteriorate meaningfully.

Kirk’s bullish view comes as a broader global pullback in semiconductor shares has hit major AI beneficiaries across Japan, South Korea, and Taiwan amid concerns about crowded positioning, rising corporate debt, and competition from Chinese rivals.

After rallying about 44% through its June peak this year, Japan’s tech-heavy Nikkei 225 has fallen 14%, while big winners such as Kioxia and Furukawa Electric are down at least 40% over the same period, according to LiveMint Markets. Goldman expects earnings season to matter most, with Japan’s first-quarter net profits in the broader Topix index (excluding more volatile SoftBank) seen rising about 26% year over year, with a significant portion tied to AI-linked companies.

Latest closeNikkei 225 64,931.19 ▲0.5%

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