Shares of Japan’s SoftBank Group plummeted more than 14% on Wednesday, erasing approximately $32 billion in market value in a brutal session that saw a broad sell-off across Asia’s artificial intelligence-linked stocks.
The rout, which followed overnight declines in US technology peers, signals a sharp reversal in investor sentiment, as growing concerns over stretched valuations in the market’s most crowded trade finally come to a head.
The anxiety was not confined to SoftBank. Major technology and semiconductor firms across the region were hit hard as investors rushed to take profits.
In Japan, semiconductor testing equipment maker Advantest dropped over 8%, while chipmaker Renesas Electronics lost 5.48%.
South Korean memory chip giants Samsung Electronics and SK Hynix, whose earlier surge had propelled the Kospi index to record highs, both fell by nearly 6%.
SoftBank at the epicenter of the AI storm
As a prolific investor in the AI space, SoftBank found itself at the epicenter of the sell-off.
The company has built a sprawling portfolio that includes a controlling stake in UK-based chip designer Arm Holdings and the recent acquisition of Ampere Computing to bolster its data center capabilities.
Shares of Nasdaq-listed Arm fell 4.71% overnight, directly impacting SoftBank’s valuation.
If Wednesday’s losses hold, it will mark the worst single day for SoftBank’s stock since August of last year, according to LSEG data.
The plunge extends a painful slide from the previous session, bringing the group’s total market capitalization loss to nearly $50 billion in just two days.
Is the AI bubble starting to deflate?
SoftBank’s deep exposure to the AI ecosystem—from infrastructure and chips to application-level startups like OpenAI and Tempus AI—has made it a bellwether for sentiment in the sector.
The sharp, synchronized downturn across the US and Asia suggests that after a year of relentless gains, investors are now seriously questioning whether the sky-high valuations of AI-related companies can be sustained, marking a potential turning point for the market’s hottest trade.
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