SoftBank Group shares dropped more than 11% on Friday, leading a significant selloff in Asian technology stocks as investors grew increasingly concerned about the rising costs associated with artificial intelligence infrastructure [1]. The decline in SoftBank followed a fourth consecutive session of losses for the Nasdaq Composite, which fell 0.46% overnight, with a notable 6% plunge in Apple shares overshadowing Micron's stronger-than-expected earnings [1].
Analysts noted that SoftBank could remain under pressure after its chip designer Arm Holdings fell 3.2% overnight, underperforming the broader semiconductor sector despite a sharp rebound in other AI-related stocks [1]. Andrew Jackson, equity strategist at Ortus Advisors, commented that investor enthusiasm for SoftBank may be further dampened by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation [1].
The selloff extended across the Asian semiconductor sector, with South Korea's SK Hynix falling more than 3%, Samsung Electronics losing nearly 3%, SK Square down around 7%, and LG Electronics and Seoul Semiconductor also trading lower [1]. In Japan, Advantest declined over 6%, while Tokyo Electron was down more than 2% [1].
On Wall Street, Apple led declines after announcing price increases for its MacBook and iPad products, citing higher component costs, including chips, which has fueled concerns that soaring semiconductor prices could eventually squeeze the margins of major technology companies [1]. Microsoft fell 3.5% after raising prices on Xbox consoles, while Alphabet and Meta Platforms also declined [1].
Despite Qualcomm's new AI data center chip deal with Meta being ultimately positive for Arm through royalty payments, Arm faces growing competition as Qualcomm expands more aggressively into the central processing unit market, according to Jackson [1].
CONCLUSION
The sharp decline in SoftBank and other Asian tech stocks reflects mounting investor anxiety over rising AI infrastructure costs and their potential impact on margins. With major U.S. tech stocks also under pressure and concerns about delayed IPOs, the market sentiment remains negative and volatility is likely to persist in the near term.