Shares of SoftBank Group plunged more than 12% on Friday, leading a sharp decline in Asian technology stocks after weakness in U.S. markets renewed investor concerns over artificial intelligence spending and rising semiconductor costs.
The Japanese investment giant recorded one of the steepest losses in the region as investors reacted to a fourth consecutive decline in the Nasdaq Composite, which fell 0.46% overnight. Selling pressure intensified after Apple dropped 6%, overshadowing stronger-than-expected quarterly results from memory chipmaker Micron Technology.
SoftBank also faced additional pressure after its majority-owned chip designer, Arm Holdings, declined 3.2% during U.S. trading, underperforming the broader semiconductor sector despite renewed interest in AI-related stocks.
Market analysts said investor sentiment toward SoftBank remains cautious as concerns grow over the rising costs of artificial intelligence infrastructure and uncertainty surrounding major AI investments.
Andrew Jackson, Equity Strategist at Ortus Advisors, noted that optimism surrounding SoftBank has also been dampened by reports suggesting that OpenAI may postpone its planned initial public offering until next year while seeking stronger investor demand for a valuation reportedly approaching $1 trillion.
Jackson added that while Qualcomm's recently announced AI data center chip partnership with Meta Platforms could benefit Arm through higher royalty income, the chip designer also faces increasing competition as Qualcomm expands its presence in the central processing unit (CPU) market.
The weakness quickly spread across Asia's semiconductor industry.
In South Korea, SK Hynix fell more than 3%, while Samsung Electronics declined nearly 3%. Technology investment company SK Square dropped around 7%, with LG Electronics and Seoul Semiconductor also posting notable losses.
Japanese semiconductor equipment manufacturers were similarly affected. Advantest fell more than 6%, while Tokyo Electron declined over 2% as investors reduced exposure to AI-related technology stocks.
The regional selloff mirrored broader weakness on Wall Street, where concerns over rising production costs weighed heavily on technology companies.
Apple recently announced price increases for several MacBook and iPad models, citing higher component expenses, including semiconductor costs. The move has fueled concerns that increasing chip prices could put pressure on profit margins across the global technology sector.
Meanwhile, Microsoft fell 3.5% after raising prices on its Xbox gaming consoles, while shares of Alphabet and Meta Platforms also ended lower during Thursday's trading session.
The latest market decline highlights growing investor concerns that the rapid expansion of artificial intelligence infrastructure may lead to higher operating costs and slower returns on investment, even as demand for AI technologies continues to grow globally.
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