TOKYO: Japan’s Nikkei share average rose on Thursday, snapping a four-day decline, after strong results from Nvidia eased valuation concerns over the artificial-intelligence sector.
The Nikkei 225 Index briefly climbed above the key psychological 50,000 figure before losing some momentum in the afternoon. The gauge closed up 2.7 percent at 49,823.94, while the broader Topix gained 1.7 percent.
After the bell in New York, AI darling Nvidia forecast quarterly revenue well above analysts’ estimates.
Global markets have looked to the chip designer to determine whether investing billions of dollars in AI infrastructure expansion has resulted in an AI bubble.
Japanese suppliers and investors in the AI sector have been major drivers in powering the Nikkei gauge to all-time highs before a pause set earlier this month.
“Ahead of Nvidia’s results, there was heightened focus on whether AI-related profitability would justify massive infrastructure investments,” said Maki Sawada, a strategist at Nomura Securities. “Companies that had seen selling on profit-taking are now being bought back, leading to a sharp rebound in the Nikkei.”
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