Japanese Stocks Soar to Record Highs on AI Optimism

Japan's Nikkei index hit a record high on Wednesday, riding the wave of excitement from AI stocks that surged on Wall Street the day before. The jump came after Nvidia announced plans to build supercomputers for the U.S. Department of Energy and Microsoft secured a major stake in OpenAI.

The Nikkei climbed 1.3% to 50,867.58 points, while the broader Topix index managed a modest 0.03% gain. This follows Tuesday's strong performance on Wall Street, where all three major U.S. stock indexes closed at record highs.

The AI boom is clearly spreading across markets. Nvidia's announcement that it will build AI supercomputers for the U.S. Department of Energy sent ripples through tech stocks globally. But Microsoft made an even bigger splash with its OpenAI deal.

Microsoft just locked in a 27% stake in OpenAI as the ChatGPT maker restructures into a public benefit corporation. This gives Microsoft significant influence over one of the most valuable AI companies in the world. The move shows how tech giants are racing to secure their positions in the AI space.

Japanese chip companies were the biggest winners from this AI enthusiasm. Advantest, a major player in semiconductor testing equipment, surged 15.5% and was the top performer on the Nikkei. Lasertec, another chip-related stock, jumped 5.9%.

This pattern makes sense. When AI stocks rally in the U.S., investors often look to Japanese companies that supply the hardware and components needed for AI systems. Japan has several key players in the semiconductor supply chain, making it a natural beneficiary of AI investment trends.

The record high for the Nikkei also reflects broader confidence in Japanese markets. The country's stocks have been on a strong run as corporate governance reforms and currency factors work in their favor.