SoftBank Group plunged more than 12% on Friday, leading a broad selloff in Asian technology stocks amid mounting concerns over the rising cost of artificial intelligence infrastructure. The Japanese conglomerate led losses across the region after the Nasdaq Composite fell for a fourth straight session overnight, dropping 0.46% as a 6% plunge in Apple overshadowed Micron's stronger-than-expected earnings. The weakness reflected broader anxiety in global tech markets about escalating semiconductor prices and their potential impact on major technology companies' margins.
Asian Semiconductor Stocks Follow U.S. Tech Declines
SoftBank Group's decline followed a 3.2% overnight drop in its chip designer Arm Holdings, which underperformed the broader semiconductor sector even as AI-related stocks rebounded sharply. The weakness spilled into Asia's semiconductor sector, with South Korea's SK Hynix falling more than 3% and Samsung Electronics losing nearly 3%. Technology-focused investment holding company SK Square was down around 7%, while LG Electronics and Seoul Semiconductor also traded lower.
In Japan, Advantest declined over 6%, while Tokyo Electron was down more than 2%. Andrew Jackson, an equity strategist at Ortus Advisors, noted that Qualcomm's new AI data center chip deal with Meta is ultimately positive for Arm through royalty payments, though Arm also faces growing competition as Qualcomm expands more aggressively into the central processing unit market. Jackson also said investor enthusiasm for SoftBank may be capped by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.
Apple Announces MacBook and iPad Price Increases
Overnight on Wall Street, Apple led declines after announcing price increases for its MacBook and iPad products, citing higher component costs, including chips. This fueled concerns that soaring semiconductor prices could eventually squeeze the margins of major technology companies. Microsoft fell 3.5% after raising prices on Xbox consoles, while Alphabet and Meta Platforms also declined.
FAQ
What caused SoftBank Group's stock to fall on Friday?
SoftBank Group plunged more than 12% on Friday amid mounting concerns over the rising cost of artificial intelligence infrastructure. The decline followed a fourth straight session of losses in the Nasdaq Composite and a 3.2% overnight drop in Arm Holdings, SoftBank's chip designer subsidiary.
Why did Asian semiconductor stocks decline?
Asian semiconductor stocks followed U.S. tech declines, with concerns about escalating chip prices impacting major technology companies. South Korea's SK Hynix fell more than 3%, Samsung Electronics lost nearly 3%, Japan's Advantest declined over 6%, and Tokyo Electron was down more than 2%. The selloff was triggered by Apple's announcement of price increases for MacBook and iPad products citing higher component costs.
