On October 22, driven by a strong wave of risk aversion, the Nikkei 225 index took a significant hit, plummeting by 2.65% to close at 62,907.84 points. This marked its lowest closing level since July 30. Analysts at InTouch Capital Markets have highlighted that investors are now casting doubt on whether the financial statements of artificial intelligence companies can justify their lofty valuations. Moreover, they are questioning the prudence of companies persisting in large-scale investments in computing infrastructure. Adding to the market's woes, escalating geopolitical tensions have further exacerbated the pressure.
