Japan's Nikkei edges higher on tech strength; Nvidia-linked suppliers drag
- The Nikkei was up 0.33% at 61,448.21
Japan's Nikkei share average saw a slight rise, boosted by tech stocks, even as Nvidia-linked suppliers faced declines amid uncertainty surrounding the US AI chipmaker and its CEO.
- Nvidia's CEO facing potential ousting over extramarital affairs.
- Impact of Nvidia's leadership uncertainty on its suppliers.
- Performance of various chip-related stocks in the Tokyo market.
TOKYO: Japan’s Nikkei share average inched higher on Thursday, helped by tech stocks even as Nvidia-linked suppliers Advantest and Ibiden fell amid uncertainty surrounding the US AI chipmaker.
The Nikkei was up 0.33% at 61,448.21 as of 0125 GMT, while the broader Topix rose 0.59% to 3,952.62.
“Nvidia’s future is unclear, which is why those firms who have close relationships with it fell,” said Daisuke Hashizume, a senior strategist at Daiwa Securities.
“But other chip-related shares rose, tracking their peers on Wall Street. There is an expectation that Nvidia peers may benefit from Nvidia’s uncertainties.”
Nvidia’s board is meeting on Wednesday to decide whether to oust CEO Jensen Huang, a source familiar with the matter told Reuters, as the world’s dominant supplier of AI processors grapples with reports of two extramarital affairs involving its longtime leader.
Chip-testing equipment maker Advantest fell 2.89% and electronics component maker Ibiden lost 6.11%.
On the other hand, chip-making equipment maker Tokyo Electron rose 2.57% and memory-chip maker Kioxia was up 2.4%. Technology investor SoftBank Group rose 0.67%.
Of more than 1,500 stocks on the Tokyo Stock Exchange’s prime market, 64% rose, 31% fell and 3% traded flat.