TOKYO, May 20 (Reuters) - Japan's Nikkei share average

slipped to a near three-week low on Wednesday, with SoftBank

Group among the top laggards, as investors locked in profits on

AI-related stocks that had powered the market's recent rally.

The Nikkei was down 1.6% at 59,558.06, as of 0135

GMT, touching its weakest point since May 1. The broader Topix

declined 1.7% to 3,784.67.

Market participants sold shares that had driven the Nikkei

to record highs earlier this month, according to Kazuaki

Shimada, chief strategist at IwaiCosmo Securities.

"But this is an appropriate adjustment of Nikkei's reliance

on a small group of shares."

The Nikkei had reached an all-time high of 63,799.32 on May

14.

Among the biggest decliners, technology investor SoftBank

Group tanked 6% on Wednesday and chip-making equipment

maker Tokyo Electron ( TOELF ) lost 3.75%.

Fibre optic cable maker Fujikura ( FKURF ) fell 7.7%,

extending losses for a fifth consecutive session after reporting

fiscal 2028 operating profit below market expectations.

Fujikura ( FKURF ), a supplier of materials used in AI data centres,

had been one of the standout performers in the Nikkei's recent

rally.

"When Fujikura ( FKURF ) is sold, investors sell other technology

stocks," Shimada explained.

However, he added that declines in the sector remained

limited ahead of AI chipmaker Nvidia's ( NVDA ) quarterly

earnings due later in the day.

"If Nvidia's ( NVDA ) results are good, the shares may jump in the

next session," he said.

Shares of Advantest ( ADTTF ), a supplier for Nvidia ( NVDA ), bucked

the trend and gained 0.83%.

Meanwhile, Ube Corp ( UBEOF ) surged 20% to become the

Nikkei's top percentage gainer after the cement maker announced

plans to increase dividend payouts.

Of the more than 1,600 stocks traded on the Tokyo Stock

Exchange's prime market, 83% fell, 14% advanced and 1% traded

flat.