The Tokyo stock market on the 27th opened with buying momentum, with the Nikkei Stock Average starting higher at 66,775 yen, up 513 yen from the previous business day, marking a continued rise.
Following the close of U.S. stock trading yesterday (early this morning in Japan time), the U.S. …$NVIDIA (NVDA.US)$announced its earnings for the May-July period. Both sales and net income hit record quarterly highs, and the company presented a favorable outlook for future performance. In response, the company’s shares are trading above the previous closing level in after-hours trading, despite volatility. Buoyed by NVIDIA’s strong earnings, the buying dominance in today’s Tokyo market is expected to strengthen. Broad buying inflows into major AI and semiconductor-related stocks are likely to lift the overall market. A recovery of the Nikkei Average to the 67,000 yen range is now within sight.
According to the article, company executives are scheduled to visit the Prime Minister’s Office on the 27th to announce the construction of a new building. The mass-produced product is “NAND flash memory” used for long-term data storage. Kioxia has two semiconductor memory production sites: the Yokkaichi Plant (Yokkaichi City, Mie Prefecture) and the Kitakami Plant (Kitakami City, Iwate Prefecture), and it has decided to construct a third building within the Kitakami Plant. The investment amount is expected to exceed 1 trillion yen.
NVIDIA’s May-July revenue rose 2.1 times year-on-year, surpassing market forecasts. It was also reported that CFO Colette Kress stated during the earnings briefing that revenue for the next fiscal year (FY28.1) is expected to increase by more than 70% compared to the current period. Consequently, NVIDIA’s stock price is rising in after-hours trading.
The split will be executed at a ratio of 1 share to 2 shares, with September 30 as the record date. While the company acknowledges the Tokyo Stock Exchange’s ‘desirable investment unit (under 500,000 yen),’ it limited the split ratio to 1-for-2 this time to suppress abrupt changes in the investment environment associated with the stock split.
SBI notes that operating profit for Q1 of FY27.3 reached 1.0634 trillion yen, exceeding the 1 trillion yen mark, with a progress rate of 35% against the initial full-year forecast, which is a high level. Although the company has already revised its FY27.3 earnings forecast upward, SBI believes there is a high possibility of another upward revision in the future, considering that merely changing the exchange rate assumption from 150 yen to 160 yen per dollar resulted in a positive effect of 480 billion yen. For Q2 and beyond, the company cites steady sales trends primarily in the US, Europe, and Japan, a further increase in the HEV mix, lower Trump tariffs, and additional rationalization effects as factors contributing to profit growth.
SBI believes that in addition to the high growth in corporate brand support services, improvements in profit margins through AI utilization are beginning to materialize, thereby increasing the certainty of mid-term profit growth. For Q2 of the fiscal year ending December 2026, gross profit reached JPY 7.8 billion and operating profit JPY 900 million, confirming a return to a profit-growth trend. The core corporate brand support business is assessed to have continued growing above the full-year forecast. Growth drivers such as D2C/EC are also accelerating, with upselling existing customers across multiple countries and channels, as well as shifting the customer portfolio toward brands with larger revenue scales, contributing to higher average selling prices.
As of August 27 at 9:03:37 AM, there are 37 stocks with special buy indications and 5 stocks with special sell indications.
$Kioxia Holdings (285A.JP)$ [Stock Name] is raising its special buy indication, attracting the top buy orders of JPY 29.7 billion (with sell orders at JPY 23.9 billion).
In addition, $Furukawa Electric (5801.JP)$ or $Taiyo Yuden (6976.JP)$ 、 $Nitto Boseki (3110.JP)$ 、 $Kokusai Electric (6525.JP)$ The stock is also raising its pre-open buy order price.
On the other hand, $Abalance (3856.JP)$ [Stock Name] is lowering its special sell indication today, attracting the top sell orders of JPY 650 million (with buy orders at JPY 0.0 billion). $Susmed (4263.JP)$ or $Kaizen Platform (4170.JP)$ Sell orders are significantly outweighing buy orders, suggesting that ask prices could be marked down, potentially driving the stock to its lower circuit breaker limit.
In addition, $EDP (7794.JP)$ or $Asaka Riken (5724.JP)$ It is also lowering its sell indicative price.
