The tech conglomerate — whose vast portfolio spans AI infrastructure, semiconductors, and application ventures — has now shed nearly 20% this week, its worst performance since March 2020. The slump erased close to $50 billion in market capitalization, underscoring how quickly investor sentiment toward AI has cooled after months of exuberance.
Friday’s drop followed a volatile week: SoftBank shares plunged 10% on Wednesday, briefly rebounded 3% on Thursday, and then fell again as global tech stocks retreated.
“SoftBank Group’s shares are falling as many bought it as the only listed proxy for OpenAI,” said David Gibson, senior research analyst at MST Financial. “But the pullback shows growing caution as investors realize that many of OpenAI’s partnerships remain potential rather than confirmed, and funding prospects are still uncertain.”
AI Hype Meets Market Reality
The sell-off followed remarks from OpenAI CEO Sam Altman, who confirmed that the company has been in discussions with the U.S. government about federal loan guarantees to help finance chip manufacturing. His comments, alongside reports that OpenAI’s CFO sought government support for semiconductor production, reinforced concerns that AI’s rapid expansion may require more capital than initially expected.
SoftBank’s fortunes are deeply tied to the AI ecosystem through its controlling stake in Arm Holdings, the U.K.-based chip designer powering much of the world’s mobile and AI processors. Shares of Arm, listed on the Nasdaq, also slipped 1.21% overnight.
Adding to investor unease, Bloomberg recently reported that SoftBank had considered acquiring U.S. chipmaker Marvell Technology Inc. earlier this year — a move seen as part of its broader effort to deepen exposure to semiconductor development.
Tech Sector Retreats Across Asia and the U.S.
SoftBank’s slump was part of a wider tech downturn. In Japan, Advantest fell 5.5%, Renesas Electronics dropped 4%, and Tokyo Electron lost 1.35%. In South Korea, SK Hynix declined 2.2%, while Samsung Electronics slipped 1.3%.
The weakness followed overnight losses in the U.S., where AI-related giants also faltered. Qualcomm fell nearly 4% despite strong quarterly results, warning it could lose future Apple business. AMD slid 7%, while Palantir and Oracle dropped 7% and 3%, respectively. Nvidia and Meta Platforms also ended lower.
Market Analysts Urge Caution, Not Panic
While comparisons to the late 1990s dot-com bubble have resurfaced, some strategists say the current situation remains different in key ways.
“It’s too soon to call a bubble,” said Laura Cooper, global investment strategist at Nuveen. “Today’s AI capex is being funded largely by cash-rich firms with solid balance sheets, not cheap credit or speculation. The greater risk isn’t a bubble bursting, but valuation fatigue — investors tiring of paying ever-richer premiums for AI returns that don’t materialize quickly enough.”
For now, SoftBank’s decline highlights a broader recalibration across global markets — one where excitement about artificial intelligence is giving way to a more measured assessment of how fast the technology can deliver profits.