TOKYO, Aug 7 (Reuters) - Japan's Nikkei share average fell

more than 1% on Friday as losses in AI and chip-related stocks

outweighed broader gains, while SoftBank Group slid despite

beating market expectation for first-quarter earnings.

The Nikkei fell 1.17% to 64,911.99 by 0154 GMT,

while the broader Topix inched up 0.04% to 4,057.47. For

the week, the Nikkei has risen 0.8% and the Topix has gained

1.3%

SoftBank Group dropped 4.3% on Friday even after

the technology investor posted a smaller-than-expected 18% drop

in first-quarter profit on Thursday.

"It beat market consensus, but failed to provide cues that

could lift the stock price," said Naoki Fujiwara, senior fund

manager at Shinkin Asset Management.

Chip-related Advantest ( ADTTF ) and Tokyo Electron ( TOELF )

fell 4.65% and 3.2%, respectively, while memory chip

maker Kioxia ( KXHCF ) tumbled 7.5%.

"Market concerns about overvaluation of these stocks have

eased, and their earnings are not bad, but investors are still

not fully confident about a rebound in stock prices," said

Fujiwara.

Overall, the market was positive, with about 60% of stocks

trading higher on the Tokyo Stock Exchange's prime market.

Nintendo ( NTDOF ) rose 4.7% after the game maker said on

Thursday its operating profit soared 150.5% in the April-June

quarter, helped by brisk demand for Switch and Switch 2 software

and refunds of U.S. tariffs.

Audio equipment and camera maker Sony Group ( SONY ) was up

2.7%.

Bank shares rose, with Mitsubishi UFJ Financial Group ( MUFG )

and Sumitomo Mitsui Financial Group ( SMFG ) up 0.39%

and 0.47%, respectively.

The Topix value share index rose 0.26%, against a

0.35% fall for the growth stock index.