(Updates with closing prices)

TOKYO, Feb 27 (Reuters) - Japan's Nikkei share average

closed higher on Thursday, recovering from a decline in the

previous session, though gains were capped as chipmaker

Advantest ( ADTTF ) fell despite a strong growth forecast from its client

Nvidia ( NVDA ).

The Nikkei rose 0.3% to close at 38,256.17, after

falling as much as 0.2% during the session. The broader Topix

climbed 0.73% to 2,736.25.

Markets had been awaiting earnings from artificial

intelligence chip-maker Nvidia ( NVDA ) for a boost to lift the

Nikkei, which hit a four-month low on Wednesday.

"Nvidia ( NVDA ) reported firm results but the market was not

overjoyed," said Yusuke Sakai, a senior trader at T&D Asset

Management.

Japanese chip-related stocks, key components of the

index, showed mixed movements as the market awaited Nvidia's ( NVDA )

share performance later in the day, strategists said.

Chip-making equipment maker Tokyo Electron ( TOELF ) trimmed

early gains to end nearly 1% higher, providing the biggest boost

to the Nikkei.

Chip-testing equipment maker Advantest ( ADTTF ), a supplier

to AI darling Nvidia ( NVDA ), erased early gains to slump about 2%,

weighing on the Nikkei the most. The stock has been subject to

fluctuations due to broader market trends.

Socionext jumped 12.69% to become the biggest

percentage gainer in the Nikkei after the chip-related firm

announced a partnership with Google Quantum AI.

Shares of Seven & I Holdings ( SVNDF ) tanked 11.69% after

the operator of convenience stores said founding Ito family

could not secure the financing required for a $58 billion

management buyout, and it would consider a rival offer from

Canada's Alimentation Couche-Tard.

Itochu jumped 4.34% after the trading firm said it

had ended its consideration of participating in the Seven & I ( SVNDF )

founding family's buyout proposal.

Nissan Motor surged 3.65% after a report suggested

the automaker is considering replacing CEO Makoto Uchida due to

a decline in business performance and the collapse of talks to

merge with Honda Motor ( HMC ).