Artificial intelligence (AI) has fueled a stronger-than-expected earnings season for Japan’s tech sector, with surging data-center demand prompting chipmakers and equipment suppliers to raise forecasts.
With most companies in the MSCI Japan Information Technology Index having reported, more than three-quarters beat analyst estimates, among the highest in the broader MSCI Japan Index. Profit across the index rose 35%, with Advantest among the biggest contributors, according to a compiled data.
While the wave of upbeat guidance from leading suppliers and renewed government support are fueling momentum in Japan’s chip revival, the earnings season also highlighted a widening divide in the global chip industry: AI-driven demand continues to propel profits, though suppliers to the automotive industry continue to struggle.
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