Japan’s Nikkei 225 Index declined 0.33% to settle at 63,082 on Monday, marking a continuation of the prior session’s downward trend. Investor confidence diminished following a tempered earnings forecast from memory chip manufacturer Kioxia Holdings, fueling apprehensions regarding a potential deceleration in the expansion of demand spurred by artificial intelligence.

Kioxia shares experienced a sharp decline of 15.8% following the release of the company’s forecast for operating profit of ¥2 trillion for the December quarter, a marginal increase from the ¥1.99 trillion reported in the preceding quarter. The projection signaled a deceleration in earnings momentum relative to previous periods.

Screen Holdings declined 19% after maintaining its full-year forecast, notwithstanding record order intake and sustained resilience in the semiconductor equipment market. Other technology stocks also registered declines, with Ibiden decreasing 3.8%, Taiyo Yuden shedding 3% and SoftBank Group retreating 1.6%.