Nikkei 225 Falls 1.3% to 66,588 on Broadcom Shock, June 08

Japan’s Nikkei 225 index fell 882.57 points to 66,588.12 on June 08, down 1.3% from the previous close. The decline follows Broadcom’s disappointing earnings guidance for AI semiconductors, which triggered selling across global tech stocks. The index remains up 28.5% year-to-date but faces pressure from US inflation data and rate hike expectations.

Broadcom Shock Hits AI Chip Rally

Broadcom reported second-quarter AI semiconductor sales of 160 billion USD, below market expectations of 172 billion USD. The miss sparked a 19.5% stock price decline over two days and rippled through global semiconductor supply chains. Tokyo Electron, Japan’s largest semiconductor equipment maker, and Advantest, which supplies testing equipment, faced selling pressure as investors reassessed AI demand growth.

Nikkei Retreats From Record Highs

The index hit an all-time high of 68,786 points on June 3, 2026, driven by semiconductor and AI-related stocks. The 50-day moving average sits near 61,693 points, while technical analysis shows support at 62,000 points. Meyka’s 12-month forecast targets 49,931 points, suggesting limited upside from current levels. The index carries a C+ grade with a HOLD suggestion.

US Inflation Data Looms Large

May consumer price index data arrives June 10, with market expectations at 4.2% year-over-year, up from 3.8% in April. Producer price index forecasts show 6.4% inflation, also accelerating from 6.0% prior month. Strong US jobs data on June 5 showed 172,000 new hires, above expectations of 88,000, raising odds of Federal Reserve rate hikes. Higher US rates typically weigh on Japanese equities and the yen.

Semiconductor Strength Amid Uncertainty

Kioxia Holdings announced a progressive dividend policy and 4.7 trillion yen in annual capital spending through 2029, betting on AI-driven memory demand. Flash memory bit demand is forecast to grow at 22% annually through 2028, above prior-year estimates. However, the Broadcom miss signals potential slowdown in AI infrastructure buildout, creating near-term volatility for Japan’s semiconductor supply chain.

Final Thoughts

The Nikkei 225’s 1.3% decline reflects global AI chip concerns, not fundamental weakness in Japan’s economy. With Meyka rating the index C+ and targeting 49,931 points, downside risk appears limited below 62,000 points on technical support.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.