U.S. business outlet Business Insider reported on May 25 that some assessments say Japan's stock market is close to a "true revival" for the first time in 40 years.

The Nikkei 225 has climbed about 30 percent since the start of the year and broke through 67,000 for the first time. That comes as Japan's status has been highlighted as a key base in the AI semiconductor supply chain. Shares of semiconductor equipment and testing firms such as Tokyo Electron, Advantest and Disco have surged together, and SoftBank's investments in OpenAI and Arm are also drawing market attention.

Warren Buffett's Berkshire Hathaway has also added to its stakes in Japan's general trading companies, and continued inflows from overseas investors have become another driver of gains. Japan's first-quarter real GDP growth rate came in at an annualised 2.1 percent, beating expectations, and inflation has held near the Bank of Japan's 2 percent target for nearly 2 years.

Bank of America raised its year-end target for the Nikkei 225 to 67,000, citing the AI boom and Japan's role in the semiconductor materials and parts supply chain. It analysed that profit growth was particularly strong in sectors benefiting from AI infrastructure and interest rate normalisation, including electronics, machinery, banks, construction and real estate.

Global asset manager Neuberger Berman analysed that Japan's AI strength lies in "physical AI" - how AI is integrated into manufacturing and value creation processes. It cited Toyota's move into robotics and Sony's imaging sensor collaboration with TSMC as representative examples.

Goldman Sachs estimated that a 10 percent rise in share prices lifts Japan's consumption growth rate by about 0.3 percentage points. Asset Management One International, an affiliate of Mizuho, forecast that Japanese companies' return on equity will reach 10.5 percent this year, well above the 15-year average of 8 percent. The outlet also reported that there is a view that valuations that are still low compared with the U.S. stock market remain room for further gains.