Goldman Sachs says the sharp sell-off in Japan AI-related stocks has created a
buy opportunity and that strong earnings could revive interest in semiconductor
names. Bruce Kirk, Goldman's chief Japan equity strategist, said the correction
has lowered the earnings bar, making outperformance more price-moving, and that
current levels look attractive to add positions absent a material deterioration
in geopolitical risk. He added that earnings will ultimately decide the
direction and that strong results at much lower price levels should refocus
investors on the AI profit story. Goldman cautioned short-term volatility may
persist: its prime-brokerage data show hedge funds' gross and net Japan
exposures sit above the 98th percentile of their five-year ranges, a
historically high level.
