J.P. Morgan predicts that the AI and corporate reforms will drive the Nikkei index to 75,000 points by the end of the year.

JPMorgan Securities has raised its year-end target for the Nikkei 225 index from 70,000 points to 75,000 points, citing expectations of more favorable factors from AI and the upward potential brought by corporate reforms. The brokerage also raised its target for the Japan Topix index from 4,300 points to 4,400 points. Strategists like Rie Nishihara wrote in a report that negative factors such as the Bank of Japan's interest rate hike and geopolitical risks in the second half of this year are expected to be offset by the favorable factors from the AI semiconductor cycle, balance sheet improvement, and structural changes such as corporate growth strategies. They stated that the global AI super cycle is advancing faster than expected. While the stock market has been rising rapidly, the valuation of the Topix index has cooled slightly, alleviating concerns about market overheating. JPMorgan believes that there is an upward risk to profit growth; downside risks include "excessive depreciation of the yen" and rapid interest rate hikes.