Shares of Japan's SoftBank Group experienced a significant downturn, falling more than 11% in the wake of an overnight sell-off in U.S. markets and broader profit-taking across the technology sector. This sharp decline mirrored losses seen in other prominent Asian tech firms, including Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn.
CANADA - 2025/08/07: In this photo illustration, the SoftBank Group (Soft Bank) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
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While SoftBank recently surpassed Toyota Motor to become Japan's most valuable company, fueled by fervent investor enthusiasm for new technologies, the market is increasingly scrutinizing its high-stakes bets on artificial intelligence. Despite a robust 70% year-to-date surge in its share price, concerns over potential risks associated with these AI investments are now coming to the fore.
SoftBank CEO Masayoshi Son remains undeterred, asserting that the AI revolution will dwarf the dot-com era of the early 2000s by a factor of 50. Reflecting on historical market patterns, Son stated, "Now, if you look at the history, electronics and motorization crashed in 1929, but went up for many, many years, for the next 100 years after that … so there may be some correction, but that will be the best investment opportunity to me."
Deutsche Bank analyst Peter Milliken observed the market's current leanings, noting that it appears "to become fixated on short-term momentum, and less interested, or unable, to map out the long-term trajectory with detailed assumptions." This sentiment underscores the tension between short-term market fluctuations and long-term technological vision.
The tech sector downturn was not isolated to Japan. In South Korea, memory chip giants Samsung and SK Hynix saw their shares dip by 1.25% and 2.75% respectively. Both companies had previously crossed the $1 trillion market valuation threshold in May, indicating that profit-taking activities were widespread. Taiwan's TSMC also recorded a 1.65% fall, while Foxconn dropped over 4%.
Across the Pacific, the U.S. tech market experienced its own corrections. Chip powerhouse Nvidia declined by 3.62%, Google parent Alphabet lost 0.79%, and e-commerce giant Amazon shed 2.5% of its value.
In other news, SoftBank recently divested a 3.25% stake in Indian eyewear manufacturer Lenskart. The transaction, executed through its affiliate SVF II Lightbulb (Cayman), involved selling 56.5 million shares at 508.55 Indian rupees each (approximately $5.32), valuing the deal at around 28.73 billion rupees.
SoftBank's shares concluded trading 11.3% lower at 7,377 yen, reflecting the day's market pressures.
—Report contributions by CNBC's Lee Ying Shan and Sawdah Bhaimiya.
