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The Japan Times
AI boom sees investors shift from Japan’s value to growth stocks
Japanese equities are evolving from a value-centric market to one that increasingly favors growth, driven by firms involved in artificial intelligence. With major companies like memory-chip maker Kioxia Holdings surpassing traditional leaders like Toyota in market capitalization, foreign investors, including pension funds, are taking a renewed interest in Japan’s growth potential. This shift, though promising, raises concerns about vulnerability to corrections in the wake of a possible AI trend reversal.
MonitorConfidence: HighShort term horizon
Published 24 Jun 2026, 02:45 UTC2 min read
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Summary
TL;DR
- AI firms are rising in Japan's market-cap rankings
- Kioxia Holdings overtook Toyota in market value
- Foreign investors are increasingly interested in Japanese growth stocks
- Historic perception of Japan as a value market is changing
- Price-to-earnings ratios for major Japanese firms are rising
Interesting facts
- The shift marks a transformation in Japan's investment narrative
- AI-driven semiconductors are now leading the market
- Global interest in Japan reemerged post-2023 due to corporate governance reforms