TOKYO, June 19 (Reuters) - Japan's Nikkei share average hit

a record high on Friday as investors scooped up AI-related

stocks following a sharp rally in U.S. semiconductor shares.

The Nikkei was up 0.78% at 71,608.95, as of 0138

GMT, after hitting a record high of 71,952.99 earlier in the

session.

The broader Topix was down 0.24% at 4,058.54.

"Investors had no choice but to buy chip-related shares

after a sharp rally in the U.S. chip shares overnight," said

Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

The U.S. Philadelphia semiconductor index sharply

outperformed the rest of the market with a 6.4% rally overnight

as Intel's ( INTC ) shares jumped to a record high and finished

up 10.6%.

U.S. President Donald Trump said iPhone maker Apple ( AAPL )

has agreed to work with Intel ( INTC ) to design and manufacture its

chips in the United States.

Shares of Intel ( INTC ) supplier Ibiden ( IBIDF ) rose as much as 5%

earlier in the session, and was last up 1.11%.

Fujikura ( FKURF ) was untraded with a glut of buy orders

after the fibre optic cable maker raised its annual net profit

forecast to 229 billion yen ($1.42 billion).

The AI data-centre materials maker had initially guided for

a 156 billion yen profit, just shy of last year's 157.1 billion

yen.

"Fujikura ( FKURF ) raised its forecast at a time when the market

turned cautious about the outlook of fibre optic cable makers,"

Shimada said.

Shares of peer Furukawa Electric ( FUWAF ) surged 15%.

Technology investor SoftBank Group and chip-testing

equipment maker Advantest ( ADTTF ) rose 3.25% and 4.19%,

respectively.

The Nikkei's gains were limited as investors were cautious

about the recent fast-paced rally, Shimada said.

The index closed about 9% above its 25-day average in the

previous session, indicating an overheated market, said Wataru

Akiyama, an equities strategist at Nomura Securities.

Bank shares dragged the Topix lower, with Mitsubishi

Financial Group and Mizuho Financial Group ( MFG )

down nearly 3% each.

($1 = 161.1100 yen)