The global artificial intelligence (AI) boom is driving significant shifts across multiple industries, with wide-ranging market impacts. Shares of Japanese technology group NEC have dropped nearly 20% since the end of last year, sharply underperforming the Nikkei Average's 30% gain, as investors worry that AI could threaten conventional IT and software companies. NEC's CEO is pushing back against these concerns, emphasizing confidence in the company's ability to adapt and grow, and highlighting a strategy focused on overseas mergers and acquisitions to counter the perceived threat of AI to its core business [1].
Meanwhile, corporate bond issuance worldwide reached a record $3.68 trillion in the first half of 2026, fueled by companies racing to fund AI investments. Major U.S. tech firms, including Amazon and Oracle, are issuing tens of billions of dollars in bonds for AI-related projects such as data centers. This aggressive borrowing is widening credit spreads, as investors demand higher yields amid mounting concerns about the sustainability of debt-fueled AI investment. The surge in bond issuance is primarily attributed to large-scale investments in AI infrastructure, and the broadening credit spreads signal a shift in risk perception among market participants [2].
The AI-driven demand for memory chips is also impacting the automotive sector. Spiking memory prices, driven by AI investments, have pushed up costs for automakers worldwide, raising the possibility of price hikes for new vehicles. GM, Ford, and others have signed agreements with Micron Technology to secure supply, as chipmakers prioritize orders from the booming AI sector. Automotive industry leaders are concerned that rising memory costs could erode margins or force them to pass costs on to consumers. Companies are exploring alternative suppliers and long-term contracts to mitigate volatility, but several warn that if current trends persist, vehicle prices may need to be adjusted upward [3].
In contrast to traditional tech and automotive companies facing challenges, Japanese firms such as Toto, Nittobo, and Ajinomoto have emerged as unexpected winners of the AI boom. Their shares have rallied 78%, 63%, and 61% respectively this year, driven by growth in AI-linked business segments. Toto's advanced ceramics business, which supplies ceramic electrostatic chucks for semiconductor manufacturing equipment, saw a 34% increase in annual revenue and a 42% jump in operating profit, offsetting declines in its core housing equipment segment. Nittobo and Ajinomoto similarly benefited from supplying materials used in semiconductor packaging for high-performance computers and data-center servers. All three companies reported sharp growth in semiconductor-related businesses for their full financial years ended March 31, underscoring the broad impact of AI on supply chains and market winners [4].
CONCLUSION
The AI investment surge is reshaping global markets, with traditional tech and automotive companies facing margin pressures and share declines, while select Japanese suppliers are experiencing sharp gains. Record corporate bond issuance and widening credit spreads reflect increased risk aversion and investor caution. The market takeaway is that AI is creating both winners and losers, driving volatility and sector rotation across industries.