Introducing the latest episode of professional investor B-Comi's 'Market Deep Dive Channel'! [Weekly Market Summary] Analysis of the 5,855-yen plunge in the Nikkei Stock …

We introduce the latest commentary from B-Comi, a stock critic and analyst, investment judge, and advisor known for his work with Stock Evangelist, as he discusses the factors behind the Nikkei’s plunge and the trends in tech stocks following the US elections on his YouTube channel, ‘Market Deep Dive Channel’.

The US midterm elections and concerns over data center regulations behind the Nikkei’s plunge

In the recent stock market, the Nikkei Stock Average saw a significant drop, leading to a historic broad-based decline where over 90% of stocks on the Tokyo Stock Exchange Prime Market fell. The background to this is
the Democratic Party’s strong performance in the US midterm elections. The Democrats’ gains have heightened concerns that new AI data center developments might be frozen or that environmental regulations could be tightened, leading to a surge in sell-offs, particularly among semiconductor-related stocks. The possibility of impacts on data center projects, especially in states like Texas, has been noted, and panic selling has spread throughout the entire market.

Mixed fortunes for two major semiconductor stocks! The reasons behind Advantest’s strong earnings and Kioxia’s sharp decline

Among individual semiconductor-related stocks, the performance results are clearly diverging.

• Advantest: Although it announced strong earnings that exceeded market expectations, upward revisions to full-year operating profit, and a large-scale share buyback, its stock price was pressured by the poor market sentiment.

• Kioxia: Its stock price fell significantly due to the delayed recovery of the NAND flash memory market and concerns over the burden of capital investment.

Even within the manufacturing equipment and sector, a polarization is progressing between stocks with strengths in HBM (High Bandwidth Memory) and those struggling with general-purpose memory.

The reality of panic selling that hit defensive stocks and large-cap stocks

This broad-based decline is not limited to tech and semiconductor-related stocks.
Even JT (Japan Tobacco Inc.), a representative defensive stock popular for its high dividends, saw price movements symbolizing the overall market turmoil, as it was sold down to near limit-low levels due to risks in its overseas business and deteriorating market conditions. The fact that margin buying balances among market participants remained at high levels and could not be fully cleared is also seen as a factor that accelerated the forced selling to avoid margin calls during this plunge.

The true performance of Japanese companies and the future of the shift toward non-AI and high-dividend funds

In the main video that follows, B-Comi explains the true performance of Japanese companies as interpreted from the Nikkei’s EPS, key points to watch in the future, and the direction of the shift toward non-AI and high-dividend funds.

※Please watch the main video for a detailed explanation.

Summary

In this episode, based on B-Comi’s commentary, we took a detailed look at the factors behind the Nikkei’s plunge and the trends in the tech and semiconductor sectors. While concerns over data center regulations triggered by the US midterm elections and panic selling are occurring,
the performance of Japanese companies themselves has not collapsed significantly. For detailed market analysis data, specific future stock strategies, and further in-depth market commentary, please watch B-Comi’s full YouTube video.