Nikkei 225 falls 0.70% to 60,819.36 as Nvidia concerns weigh on AI stocks

The Nikkei 225 ended Thursday's Tokyo session lower after three consecutive gains. The index closed at 60,819.36 points on November 12, down 429.23 points, or 0.70%, from the November 11 close of 61,248.59. The closing figure and point change were reported by JIJI PRESS at 15:30 Japan time.

AI concerns reverse morning gains

The benchmark had risen in morning trading before selling pressure strengthened later in the session. The main catalyst was renewed uncertainty surrounding Nvidia and its chief executive, Jensen Huang. The Associated Press reported that Nvidia shares fell 8.6% in after-hours trading after reports that the company's board was discussing Huang's position. The development revived concerns about the profitability, financing and valuations of the wider artificial-intelligence investment cycle.

Reuters also reported that Nvidia's after-hours decline weighed on U.S. equity futures and unsettled Asian technology markets. The reaction was not uniform: investors continued to distinguish between companies exposed to valuation pressure and those showing improving earnings or shareholder returns.

Semiconductors lead the retreat

Technology and AI-related names were among the main drags on the Nikkei. News On Japan cited declines in Advantest, Kioxia and SoftBank Group, while Ibiden was particularly sensitive to questions about its relationship with Nvidia. The selling contrasted with the broader TOPIX, which gained 7.94 points, or 0.20%, to 3,937.33.

Some sectors provided a counterweight. Resonac Holdings advanced after raising its earnings outlook on strong demand for advanced semiconductor materials. Construction companies and trading houses also drew interest after favorable earnings and shareholder-return announcements. That divergence suggests that Thursday's move was more than a broad withdrawal from Japanese equities: it reflected a rotation away from expensive or highly AI-dependent exposures toward companies with visible earnings support.

Recovery remains under scrutiny

The Nikkei's decline came after a rebound of more than 3,800 points across the three preceding sessions. The retreat therefore interrupted, rather than conclusively invalidated, the recent recovery from the sharp technology-led sell-off earlier in November. For investors, the next test is whether traditional industries and companies with improving fundamentals can offset renewed weakness in semiconductor and AI-linked shares.

Further direction is likely to depend on Nvidia-related developments, U.S. technology trading and bond yields. The index's return toward the 60,000-point area also leaves global AI valuations and the durability of corporate investment as central issues for Japanese equities. More Nikkei 225 coverage