Japan may be hiding ‘the best AI value,’ Barclays says Barclays suggests investors consider Japan for artificial intelligence stock gains, as South Korea and Taiwan’s markets are overly concentrated in chipmakers. Japan’s Nikkei 225 offers broader sector diversification and exposure to multiple parts of the AI supply chain, providing a better risk-reward balance. Beyond AI, Japan’s economic and corporate reforms are also supporting its market.

• Barclays recommends Japan as a better investment for AI stock gains compared to South Korea and Taiwan.
• South Korea and Taiwan’s equity markets are heavily concentrated in chipmakers, making them vulnerable to tech cycle swings.
• Japan’s Nikkei 225 offers broader sector diversification and exposure to various AI supply chain segments.
• Japanese companies hold critical positions across the semiconductor value chain.
• Economic and corporate reforms in Japan, including governance changes and rising shareholder returns, are also supporting the market.