SoftBank shares fell 10% following an overnight sell-off in the U.S. market driven by profit taking in the tech sector. The decline came amid broader weakness across Asian technology stocks, with TSMC down 1.65% and Foxconn falling more than 4%. Market concerns center on SoftBank's high-risk AI investments, despite the company's 70% year-to-date share price gain and recent overtaking of Toyota Motor as Japan's most valuable company.
SoftBank CEO Masayoshi Son Defends AI Investment Strategy
SoftBank CEO Masayoshi Son told CNBC he expects the AI revolution to be 50 times larger than the dot-com revolution of the 2000s. "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," Son said on Monday. Deutsche Bank analyst Peter Milliken noted in a recent investor note that the market appears "to become fixated on short-term momentum, and less interested, or unable, to map out the long-term trajectory with detailed assumptions."
Asian and U.S. Tech Stocks Record Declines
In South Korea, Samsung and SK Hynix saw their shares decline by 1.25% and 2.75% respectively amid profit taking, after both companies each crossed a market valuation of $1 trillion in May. Taiwan's TSMC was down 1.65% while Foxconn was down more than 4%. In the U.S., Nvidia was down 0.23% in after-hours trading, while Tesla fell 0.84% and Alphabet lost 0.29%. SoftBank's shares last traded 10.6% lower at 7,434 yen.
SoftBank Completes 3.25% Lenskart Stake Sale
On Wednesday, SoftBank sold a 3.25% stake of Indian eyewear maker Lenskart via its affiliate SVF II Lightbulb (Cayman), offloading 56.5 million shares at 508.55 Indian rupees each ($5.32). This sets the transaction value at around 28.73 billion rupees. Some of the buyers included mutual funds by ICICI Prudential, Indian financial services provider Kotak Mahindra and the pension fund Los Angeles City Employees' Retirement System.
FAQ
What caused SoftBank shares to fall 10%?
SoftBank shares fell 10% following an overnight sell-off in the U.S. market driven by profit taking in the tech sector.
How did other Asian tech stocks perform during the sell-off?
TSMC was down 1.65%, Foxconn fell more than 4%, Samsung declined 1.25%, and SK Hynix dropped 2.75%.
What stake did SoftBank sell on Wednesday?
SoftBank sold a 3.25% stake in Indian eyewear maker Lenskart, offloading 56.5 million shares at 508.55 Indian rupees each, for a total transaction value of around 28.73 billion rupees.
