Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Can expect more from the likes of Rakus Co Ltd, Shift Inc, NEC Corp and Fujitsu Ltd which all traded well yesterday on the rotation away from frontline AI plays.</li>
<li>It would make sense to see interest in physical AI FA plays such as Yaskawa Electric, Mitsubishi Electric, Keyence Corp and Fanuc Corp as alternative exposure to the AI theme.</li>
<li>The power semis such as Fuji Electric, ROHM Co Ltd and Renesas Electronics should hold up after a strong day for the sector in the US.</li>
</ul>


Can expect more from the likes of Rakus Co Ltd, Shift Inc, NEC Corp and Fujitsu Ltd which all traded well yesterday on the rotation away from frontline AI plays.
It would make sense to see interest in physical AI FA plays such as Yaskawa Electric, Mitsubishi Electric, Keyence Corp and Fanuc Corp as alternative exposure to the AI theme.
The power semis such as Fuji Electric, ROHM Co Ltd and Renesas Electronics should hold up after a strong day for the sector in the US.


Japan Morning Connection: Physical AI FA Plays May Draw Fresh Interest as Alternative AI Exposure

<ul>
<li>SOX up ~80% this quarter, one of its biggest ever gains, making quarter-end profit-taking a real risk for high-flying AI names over the next two sessions.</li>
<li>Rohm, Fuji Elec, Renesas and Sanken likely to open weak after Onsemi -24% taken as a warning that there isn’t much upside for power/industrial makers in the DC arena.</li>
<li>European heatwave puts Daikin, Mitsubishi Electric and Panasonic A/C names in focus as a potential distraction from AI volatility into quarter end.</li>
</ul>


SOX up ~80% this quarter, one of its biggest ever gains, making quarter-end profit-taking a real risk for high-flying AI names over the next two sessions.
Rohm, Fuji Elec, Renesas and Sanken likely to open weak after Onsemi -24% taken as a warning that there isn’t much upside for power/industrial makers in the DC arena.
European heatwave puts Daikin, Mitsubishi Electric and Panasonic A/C names in focus as a potential distraction from AI volatility into quarter end.


Japan Morning Connection: AI Names Increasingly Volatile with SOX Reversal and Quarter-End Pressure

AI and Energy Infrastructure, Explained Plainly, The Physical Layer

The Physical Layer

AI and Energy Infrastructure, Explained Plainly

A journal on the physical constraints behind the AI buildout: power, grid connection, data centres, cooling and the supply chains that gate them. Written to be understood by anyone.

Equity Bottom-Up

<ul><li>Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre.</li><li>Those lasers have to be grown on a fragile crystal that only a few factories in the world can work at volume, and demand is running well ahead of supply.</li><li>That is why Nvidia, a chip company, paid $2 billion to make sure Lumentum builds more of them.</li></ul>

Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre.Those lasers have to be grown on a fragile crystal that only a few factories in the world can work at volume, and demand is running well ahead of supply.That is why Nvidia, a chip company, paid $2 billion to make sure Lumentum builds more of them.

Nvidia paid Lumentum $2 billion for lasers, because silicon cannot make light

<ul>
<li>Expect the usual 'Takaichi trade' suspects to continue trading higher with the election result surpassing expectations.</li>
<li>US switches to risk, with tech and AI surging and NVDA clocking a +7.9% gain after the market decided big tech’s $650bn planned capex for 2026 wasn’t so bad.</li>
<li>Expect big gains for tech and SPE with the markets set to surge after US moves + election win.</li>
</ul>


Expect the usual 'Takaichi trade' suspects to continue trading higher with the election result surpassing expectations.
US switches to risk, with tech and AI surging and NVDA clocking a +7.9% gain after the market decided big tech’s $650bn planned capex for 2026 wasn’t so bad.
Expect big gains for tech and SPE with the markets set to surge after US moves + election win.


Japan Morning Connection: Takaichi Blows the Doors off and Secures a Super-Majority for the LDP

Japan Specialist

Mark Chadwick

<ul>
<li>Snap election called as PM Takaichi seeks mandate for consumption tax suspension and ¥21tn stimulus, boosting approval but reviving concerns over fiscal expansion and rising debt.</li>
<li>BOJ held rates at 0.75%, upgraded growth forecasts on stimulus effects, watched yen weakness and inflation, while bond yields wobbled on election-driven fiscal worries. </li>
<li>Corporate Japan accelerates structural reform: divesting low-return assets, deepening US strategic ties, and facing stronger shareholder activism enforcing market discipline over renewed stimulus reliance.</li>
</ul>


Snap election called as PM Takaichi seeks mandate for consumption tax suspension and ¥21tn stimulus, boosting approval but reviving concerns over fiscal expansion and rising debt.
BOJ held rates at 0.75%, upgraded growth forecasts on stimulus effects, watched yen weakness and inflation, while bond yields wobbled on election-driven fiscal worries. 
Corporate Japan accelerates structural reform: divesting low-return assets, deepening US strategic ties, and facing stronger shareholder activism enforcing market discipline over renewed stimulus reliance.


Japan Strategy | Snap Elections and the Rise of Corporate Discipline

Japan

Mitsubishi Electric Corporation develops, manufactures, and markets electronic equipment.  The Company's products include industrial machinery, heavy electric machinery, data communications systems, electronic devices, and consumer electronics.

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Mitsubishi Electric (6503 JP)

Japan Morning Connection: Physical AI FA Plays May Draw Fresh Interest as Alternative AI Exposure

Expect a continuation of the shift away from frontline AI plays. Interest in physical AI FA plays may see an increase as alternative exposure to...

Andrew Jackson

Japan Morning Connection: AI Names Increasingly Volatile with SOX Reversal and Quarter-End Pressure

Japanese AI and semi names face a rocky quarter end with power/industrial stocks, memory names and Softbank all under pressure, while A/C names may...

Andrew Jackson

Nvidia paid Lumentum $2 billion for lasers, because silicon cannot make light

Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre. Those lasers have to be grown...

The Physical Layer

Japan Morning Connection: Takaichi Blows the Doors off and Secures a Super-Majority for the LDP

With risk sentiment shifted up, look to play the bounce with Lasertec which was -17% after earnings miss and Kioxia which was -11% last week.

Andrew Jackson

Japan Strategy | Snap Elections and the Rise of Corporate Discipline

PM Takaichi calls snap election raising concerns over fiscal expansion and rising debt. BOJ holds rates, upgrades growth forecasts, as bond yields...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Physical AI FA Plays May Draw Fresh Interest as Alternative AI Exposure

Expect a continuation of the shift away from frontline AI plays. Interest in physical AI FA plays may see an increase as alternative exposure to...

Andrew Jackson

Japan Morning Connection: AI Names Increasingly Volatile with SOX Reversal and Quarter-End Pressure

Japanese AI and semi names face a rocky quarter end with power/industrial stocks, memory names and Softbank all under pressure, while A/C names may...

Andrew Jackson

Nvidia paid Lumentum $2 billion for lasers, because silicon cannot make light

Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre. Those lasers have to be grown...

The Physical Layer

Japan Morning Connection: Takaichi Blows the Doors off and Secures a Super-Majority for the LDP

With risk sentiment shifted up, look to play the bounce with Lasertec which was -17% after earnings miss and Kioxia which was -11% last week.

Andrew Jackson

Japan Strategy | Snap Elections and the Rise of Corporate Discipline

​PM Takaichi calls snap election raising concerns over fiscal expansion and rising debt. BOJ holds rates, upgrades growth forecasts, as bond yields...

Mark Chadwick

PM Takaichi calls snap election raising concerns over fiscal expansion and rising debt. BOJ holds rates, upgrades growth forecasts, as bond yields...