Nikkei Falls as Nvidia Caution Hits Chip Shares

Tokyo stocks fell on August 25 as the Nikkei 225 closed at 64,980.53, down 0.8%. Investors sold semiconductor and electronics shares ahead of Nvidia’s earnings, while a weaker yen, higher bond yields and renewed U.S. pressure on Iran kept risk appetite muted. TOPIX finished more resilient, supported by financials, transport, shipping, communications and selected domestic-demand names. The drop highlighted how the Nikkei is being swayed by a smaller group of high-priced technology and AI-related components. Analysts cited expectations that Nvidia’s quarterly revenue could nearly double to about $92 billion, with full-year guidance around $103–$105 billion, putting pressure on margins and data-center demand. Japanese chip names including Kioxia (-2.8%), Advantest (-3.6%) and Panasonic (-4.0%) weighed on the index.