Summary：**Nikkei plunges 5% as chip and AI shares tumble sharply** *Japan’s benchmark index slides amid a b

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**Nikkei plunges 5% as chip and AI shares tumble sharply**
*Japan’s benchmark index slides amid a broad sell‑off of technology equities*

**Introduction**
Japan’s Nikkei 225 index fell more than 5% on Tuesday, marking its steepest single‑day drop in over a month. The sell‑off was driven by heavy profit‑taking in semiconductor and artificial‑intelligence‑related stocks, with SoftBank Group, Tokyo Electron, and Advantest leading the decline. The move mirrors a wider global retreat from risk‑heavy tech names as investors reassess valuations amid tightening monetary policy and slowing demand signals.

**Key Developments**
The Nikkei 225 closed at 32,140 points, down 1,680 points (5.2%). Semiconductor heavyweight Tokyo Electron tumbled 8.4%, while chip‑testing equipment maker Advantest slipped 7.9%. SoftBank’s shares, which have been buoyed by its Vision Fund’s AI bets, dropped 6.3% after the firm announced a pause on new venture allocations. Other notable decliners included Renesas Electronics (-6.1%) and Fanuc (-5.8%). Trading volume surged to 2.3 times the 20‑day average, indicating heightened investor anxiety. The sell‑off coincided with a 1.5% dip in the U.S. Nasdaq Composite and a 0.9% fall in Europe’s Stoxx 600 technology index, underscoring a synchronized global tech rout.

**Industry Analysis**
Analysts attribute the sharp correction to three converging factors. First, recent U.S. Federal Reserve commentary signaled a longer‑than‑expected period of higher interest rates, raising the cost of capital for growth‑oriented tech firms. Second, quarterly earnings guidance from several chipmakers pointed to softer demand for consumer