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NEC CEO dismisses AI threat as company shares fall

Created at 22 Jul · 7:56 PM1 source↑ Market-relevant
IN SHORT

NEC shares have dropped nearly 20% this year, underperforming the Nikkei Average, as investors worry about artificial intelligence impacting traditional IT and software companies. CEO Takuro Hosoda is pushing back against these concerns.

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Key Numbers

20%NEC shares drop year-to-date
30%Nikkei Average gain year-to-date

Who's Involved

NEC
Japanese technology group whose shares have fallen
Takuro Hosoda
CEO of NEC, pushing back on AI threat concerns

↳ Why This Matters

The performance of NEC's stock reflects broader market anxieties about how emerging technologies like AI will reshape established industries and the strategies companies are employing to navigate these shifts.

Key facts

  • NEC shares are down nearly 20% year-to-date.
  • The Nikkei Average has risen 30% in the same period.
  • Concerns exist that AI may threaten traditional IT and software companies.

Shares of Japanese technology group NEC have declined by nearly 20% since the start of the year, significantly underperforming the benchmark Nikkei Average, which has seen a 30% gain. This stock performance is occurring amidst investor concerns that the rapid advancement of artificial intelligence could pose a threat to traditional IT and software companies. NEC CEO Takuro Hosoda is actively addressing these worries, advocating for the company's position in the evolving technological landscape.

Frequently asked questions

NEC shares have fallen nearly 20% from the end of last year.

The Nikkei Average has gained 30% over the same period.

Investors are worried that artificial intelligence could threaten conventional IT and software companies.

What Happens Next

01NEC to focus on overseas M&A for investment efficiency.

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Cadence
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How It Developed

NEC shares have fallen nearly 20% from the end of the year.
The Nikkei Average has gained 30% over the same period.
Investors are concerned that artificial intelligence could threaten conventional IT and software companies.

Sources

T1
Tech group NEC CEO pushes back on AI threat as company shares drop 20%Nikkei Asia

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