Japan’s Stocks Rose On AI Bets And A Dividend Dash

Tokyo Electron, Japan's largest semiconductor equipment maker, expects operating profit of 1 trillion yen ($6.35B) for FY2027, a 60% increase. Samsung Electronics is its largest customer, accounting for 15.1% of revenue. The company cites strong AI investment by U.S. tech firms and growing demand for complex semiconductor equipment as drivers. Tokyo Electron plans to raise its gross margin to 50%.

SoftBank Group's stock rebounded in September, rising 24%, as investors focused on AI returns from its $65 billion OpenAI commitment and Arm Holdings' recovery, despite higher borrowing costs and credit risks.

Japanese chip stocks surged after Micron Technology (MU) reported strong fiscal Q4 results and a better-than-expected Q1 outlook, driven by AI demand. MU's revenue was $54.23 billion, with Q1 forecast at $61.5 billion. Key Japanese chipmakers like Advantest (6857) and Tokyo Electron (8035) saw significant gains, contributing to a 2.8% rise in Japan's Nikkei index.

Autonomous Solutions, Inc. (ASI) and SoftBank Group (TSE: 9984) formed a joint venture to develop and commercialize autonomous construction equipment. SoftBank invested $225M in ASI to expand its operations. The partnership aims to scale ASI's Mobius® platform for mixed-fleet autonomous solutions in infrastructure projects.

SoftBank Group plans to raise $11.1B through high-yield bonds, with yields up to 9.75%, to invest in OpenAI. The bonds are dollar- and euro-denominated and have low credit ratings, according to the company.

SoftBank raised $11.1 billion in bonds, including $10B for OpenAI. The sale involved dollar-denominated notes with rates from 8.625% to 9.75% and €1B in euro-denominated bonds. This follows a prior $6.32B yen-denominated bond sale, supporting SoftBank's AI investment strategy.