Japan’s tech sector faced renewed pressure as DeepSeek, a major player in AI technology, issued a profit warning citing weakening demand in the artificial intelligence market. The warning sent ripples across the industry, dragging down key stocks and intensifying concerns over the sustainability of the recent AI boom.
Shares of DeepSeek plummeted 12%, marking their steepest single-day decline in months. Major tech names, including SoftBank and Sony, followed suit, shedding 3% and 2%, respectively. Investors appear to be reassessing the sector’s growth potential as AI-related revenues show signs of cooling, particularly in overseas markets. Analysts now question whether the slowdown in AI adoption could impact broader tech investments in Japan.
This marks the second consecutive week of losses for Japan’s tech-heavy Nikkei index, with AI stocks acting as a primary drag. While some market watchers view the sell-off as a temporary correction, concerns over overvaluation and waning demand may weigh on investor sentiment in the near term.
