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AI, Inc. (JP:4388)
:4388
Japanese Market
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AI, Inc. (4388) AI Stock Analysis

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JP:4388

AI, Inc.

(4388)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥411.00
▼(-12.74% Downside)
Action:Reiterated
Date:05/16/26
The score is primarily supported by improving financial performance (accelerating growth, return to profitability, and low leverage). This is meaningfully offset by weak technicals (price below key moving averages with negative momentum) and only middling valuation support given a moderate P/E and low dividend yield.
Positive Factors
Accelerating revenue growth and return to profitability
Top-line momentum and a return to net profitability indicate structural recovery in demand and improving operating leverage. Sustained revenue growth (24.5%) with positive net income supports reinvestment in product and market expansion and reduces reliance on external financing over the coming months.
Negative Factors
Compressed and volatile margins vs prior peaks
Margins have not recovered to historical highs, signaling potential structural cost pressures or weaker pricing power. Sustained lower margins constrain long-term profit growth and ROE expansion, forcing the company to either cut costs or achieve much higher revenue to restore prior profitability levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth and return to profitability
Top-line momentum and a return to net profitability indicate structural recovery in demand and improving operating leverage. Sustained revenue growth (24.5%) with positive net income supports reinvestment in product and market expansion and reduces reliance on external financing over the coming months.
Read all positive factors

AI, Inc. (4388) vs. iShares MSCI Japan ETF (EWJ)

AI, Inc. Business Overview & Revenue Model

Company Description
AI,Inc. develops and provides various speech synthesis engines and solutions in Japan. It also offers consulting and peripheral system services. AI,Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan....

AI, Inc. Financial Statement Overview

Summary
Strong rebound in fundamentals with revenue growth accelerating to 24.5% and net income turning positive, supported by a very conservative balance sheet (low leverage). Offsetting this, margins remain below earlier peak years and cash-flow conversion has been uneven despite positive free cash flow.
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.49B1.85B1.49B734.98M634.00M756.57M
Gross Profit748.95M975.77M749.19M513.90M475.42M604.30M
EBITDA36.30M214.19M31.42M120.75M31.73M122.75M
Net Income-15.14M110.96M-15.69M109.72M16.37M83.76M
Balance Sheet
Total Assets2.96B2.55B2.96B1.71B1.39B1.35B
Cash, Cash Equivalents and Short-Term Investments1.59B1.48B1.59B575.20M1.24B1.18B
Total Debt129.03M96.01M129.03M246.39M152.11M2.80M
Total Liabilities443.16M324.83M443.16M409.26M202.45M75.36M
Stockholders Equity2.36B2.22B2.36B1.30B1.19B1.28B
Cash Flow
Free Cash Flow0.0054.08M74.01M167.66M12.94M121.71M
Operating Cash Flow0.0076.92M101.73M169.61M18.16M130.56M
Investing Cash Flow0.00-417.72M-245.08M-1.04B-5.21M-8.85M
Financing Cash Flow0.00-271.25M-382.07M90.83M44.38M-43.59M

AI, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price471.00
Price Trends
50DMA
397.05
Negative
100DMA
410.60
Negative
200DMA
446.70
Negative
Market Momentum
MACD
-4.92
Positive
RSI
26.10
Positive
STOCH
7.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4388, the sentiment is Negative. The current price of 471 is above the 20-day moving average (MA) of 393.90, above the 50-day MA of 397.05, and above the 200-day MA of 446.70, indicating a bearish trend. The MACD of -4.92 indicates Positive momentum. The RSI at 26.10 is Positive, neither overbought nor oversold. The STOCH value of 7.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4388.

AI, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥13.35B19.561.66%16.23%1.23%
74
Outperform
¥17.88B10.222.54%5.97%23.02%
66
Neutral
¥52.50B8.981.66%10.86%
62
Neutral
¥2.27B22.4024.50%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
¥3.27B8.593.94%-12.10%-59.67%
59
Neutral
¥7.71B-475.08-13.53%28.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4388
AI, Inc.
372.00
-29.95
-7.45%
JP:1724
Synclayer Inc.
708.00
88.16
14.22%
JP:3773
Advanced Media, Inc.
972.00
-19.59
-1.98%
JP:4392
Future Innovation Group, Inc.
1,581.00
1,323.72
514.51%
JP:4441
Tobila Systems, Inc.
1,259.00
372.80
42.07%
JP:6522
Asterisk Inc.
958.00
533.00
125.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026