Nikkei Plunges 1,640 Points as AI Chip Stocks Tumble

黃黃郁婷 產業線記者2026-10-30 11:59

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Dragged down by a weak close on Wall Street and after-hours plunges in Amazon and Intel, the Nikkei 225 index closed the morning session down 1,639.69 points, with AI chip and substrate stocks falling across the board; the Bank of Japan held rates steady at 1.25%, with markets focused on clues about a December rate hike.

Dragged Down by U.S. Stocks as AI Spending Concerns Intensify

Led lower by chip stocks and artificial intelligence-related names, the Nikkei 225 index closed the Friday morning session down 1,639.69 points, or 2.54%, at 63,019.78, falling as much as 3% intraday. The TOPIX index closed the morning down 1.30% at 3,951.23. Investors are worried about the sustainability of massive AI spending.

Overnight, U.S. stocks closed lower dragged down by a sharp drop in Alphabet, while Amazon and Intel shares plunged after reporting earnings after the close, with selling pressure spilling over into the Japanese market and triggering a sell-off in AI-related and chip stocks, sending Japanese equities broadly lower in the morning session.

Semiconductor and AI Concept Stocks Fall Across the Board

Popular AI stocks collapsed across the board. AI startup investment heavyweight SoftBank Group closed the morning down 6.19%. Chip equipment maker Advantest closed the morning down 7.02%, Tokyo Electron fell 4.96%, semiconductor testing equipment maker Lasertec fell 13.30%, and Kokusai Electric fell 7.07%. Substrate maker Ibiden plunged 15.21%, and memory maker Kioxia fell 8.31%.

Intel gave an unexpectedly weak outlook for the current quarter, citing slowing PC business and manufacturing bottlenecks, with its shares collapsing 23.03% after hours. Amazon fell 7.30% after hours, with its cloud business accelerating growth, but overall results and revenue outlook missing expectations, free cash flow reaching negative $42.4 billion, and a forecast of further expansion in capital spending next year, intensifying market concerns that AI is burning too much cash.

Passive Components and Fiber-Optic Stocks Plunge

Passive component stocks fell sharply, with Taiyo Yuden closing the morning down 8.55% and Murata Manufacturing down 11.07%. The three fiber-optic cable giants weakened in tandem, with Fujikura down 7.01%, Furukawa Electric down 8.14%, and Sumitomo Electric Industries down 6.02%.

BOJ Holds Rates, Focus on December Move

During the midday break, the Bank of Japan announced it would keep its benchmark rate unchanged at 1.25%, a decision in line with broad market expectations. Investors will next watch for clues from the Bank of Japan on whether it will raise rates in December to gauge the policy impact on equities and currencies.

FAQ

How did the Nikkei 225 perform in this morning's session?

The Nikkei 225 closed the morning session down 1,639.69 points, or 2.54%, at 63,019.78, falling as much as 3% intraday; the TOPIX index closed the morning down 1.30% at 3,951.23.

What were the main reasons behind the sharp drop in Japanese stocks?

Overnight U.S. stocks closed lower dragged down by a sharp drop in Alphabet, with Amazon down 7.30% and Intel collapsing 23.03% after hours, as markets worried about the sustainability of AI spending and expanding capital expenditures, triggering selling in AI and chip stocks.

What was the Bank of Japan's rate decision today?

During the midday break, the Bank of Japan announced it would keep its benchmark rate unchanged at 1.25%, in line with broad market expectations, with markets focused on clues about whether it will raise rates in December.