AI Trends Drive Nikkei Index to Record Highs, Analysts Say

The Nikkei Index is expected to continue reaching new historical highs, driven by the artificial intelligence boom and strong corporate earnings, according to analysts surveyed by Reuters. The median forecast from the survey indicates that the index is projected to rise to 69,000 points by the end of next year. On Tuesday, the Nikkei Index closed at 64,996.09 points. Yunosuke Ikeda, Head of Macroeconomic Research at Nomura Securities, remains bullish on the stock market, although the rapid rise of the Nikkei Index has exceeded his expectations. He had previously forecasted the index to reach 63,000 points by December and 65,000 points a year later. He noted that the current rally is "too rapid to keep up with" as a forecaster. Among 12 respondents to an additional question, seven stated that their views on the AI-driven stock market performance remain unchanged compared to three months ago, while the remaining five expressed increased optimism. Meanwhile, Ikeda mentioned that optimism about artificial intelligence is not a necessary condition for the stock market to continue rising.