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.