Japan's Tech Stocks Jumped After Nvidia Signaled AI-Driven Demand Surge to Extend Into 2028

Akira Ito
27 Aug, 2026
Tokyo

Japan's indexes traded higher after Nvidia's earnings confirmed the sustainability of AI spending. 

The Nikkei 225 stock average inched higher 0.3%, the TOPIX edged up 0.2%, and the yen hovered at 159.35 against the U.S. dollar.  

The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta. 

Moreover, Japanese technology companies are deeply involved in the U.S. AI infrastructure buildout, which has been a key driver of the country's equity rally over the last eighteen months.   

Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion. 

Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.  

The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago. 

Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago. 

Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.

Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.  

Meanwhile, the U.S. measure of inflation stayed well above the Federal Reserve's target rate, reinforcing the hawkish expectations for U.S. interest rates. 

The alternative measure of U.S. inflation, which tracks changes in prices of goods and services, rose an annual 3.7% and monthly 0.2% in July, compared to June's annual rise of 3.7% and monthly decrease of 0.1%. 

The core rate of inflation, which excludes volatile food and energy prices, held at an annual 3.3% and advanced at a monthly rate of 0.2%, according to the report released by the U.S. Bureau of Economic Analysis.  

The bond market is in focus as the yield on a 30-year Treasury bond jumped to a 19-year high last week, forcing the Treasury Department to announce steps to cool long-term yields.  

The yield on 10-year Japanese government bonds edged up to 2.89%, amid rising expectations that the Bank of Japan is ready to raise rates at the end of the next policy meeting.  

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average advanced 0.3% to 66,451.08, and the broader TOPIX increased 0.2% to 4,121.94. 

Kioxia Holdings increased 4.8% to ¥52,390.0, Tokyo Electron jumped 1.3% to ¥56,170.0, Advantest Corp. decreased 2.3% to ¥34,880.0, and SoftBank Group Corp. edged up 0.1% to ¥5,165.0.