Nikkei Slides as AI and Chip Rally Looks Overheated
# Nikkei# semiconductors# AI stocks# valuation
Key Points
- Tokyo stocks hit by overheating worry in AI and chips
- Nikkei average fell sharply
- Crowded tech names bore the selling
- High rates pressure growth-stock valuations
Analysis
Tokyo stocks fell sharply as AI and semiconductor names looked overheated, with crowded tech leading the drop. It is a classic pullback with a deeper driver: rising long-term rates compress growth-stock valuations, so the same day's yield high and the tech decline are one story. Japan-Taiwan chip supply chains move together.