Japanese chipmakers rally as Micron earnings boost AI trade

Japanese chipmakers experienced a rally on Thursday, following Micron Technology's strong fiscal fourth-quarter earnings and optimistic outlook for AI-related semiconductor demand. Advantest Corp, Lasertec, TDK Corp, Taiyo Yuden, Murata Mfg, Kioxia Holdings, Tokyo Electron, and Rohm Ltd all saw significant gains, with Advantest rising nearly 8% and Lasertec surging 10%.

The rally was driven by Micron's revenue of $54.23 billion and forecast of $61.5 billion for the first quarter, surpassing market expectations. Additionally, long-term supply agreements rose to $32 billion from $22 billion in June, while demand for high-bandwidth memory used in AI data centers continued to outstrip available capacity.

This positive sentiment helped lift Japan's Nikkei by 2.8% to 68,606.81 points, with gains concentrated in AI and semiconductor-related shares.

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