SoftBank Shares Fall as AI Stock Concerns Resurface
Shares of Japan’s SoftBank Group resumed their decline today, November 7, 2025, mirroring a broader downturn in artificial intelligence-related stocks as investors reassess valuations within the sector.
The group, a significant investor in AI infrastructure, semiconductors, and applications, experienced a drop of over 8% in its share price. This follows a brief rally yesterday, which came after a 10% plunge on Wednesday – its largest single-day loss since April. Other Japanese tech companies also saw declines, including Advantest, down over 6%, Renesas Electronics, falling nearly 4%, and Tokyo Electron, which decreased by 1.46%. SoftBank’s controlling stake in U.K.-based semiconductor designer Arm Holdings, a key provider of chips for mobile and AI processors, also saw its Nasdaq-listed shares slide 1.21% overnight.
The downturn extends to other major players in the chip industry, with TSMC falling 0.6%, SK Hynix down over 1%, and Samsung declining 0.5%. These declines coincide with reports that SoftBank had considered acquiring U.S. chipmaker Marvell Technology Inc. earlier this year. Yesterday, U.S. AI companies also experienced losses, with Qualcomm dropping almost 4% despite positive quarterly results, and AMD, Palantir, and Oracle all seeing significant declines. Concerns about a potential tech bubble are growing as AI valuations reach new heights.
“Still, 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.” Officials are monitoring the situation closely as these market fluctuations could impact future investment in the rapidly evolving AI landscape.
The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025.
Issei Kato | Reuters
Shares of Japan’s SoftBank Group resumed their slide on Friday, following a broader slump in AI-related stocks as investors once again grew wary of the sector’s lofty valuations.
The group, which holds a wide range of AI investments across infrastructure, semiconductor, and application companies, saw shares drop more than 8%.
This comes after SoftBank gained nearly 3% in the previous session, having plunged 10% on Wednesday to clock its worst day since April.
Other Japanese tech stocks also declined. Semiconductor testing equipment maker Advantest dropped over 6%, chipmaker Renesas Electronics fell nearly 4%, Tokyo Electron, a chip production equipment maker, declined 1.46%.
SoftBank holds a controlling stake in U.K.-based semiconductor designer Arm Holdings, whose chips help power mobile and AI processors globally. Shares of Nasdaq-listed Arm slid 1.21% overnight.
Shares of the world’s largest chipmaker, TSMC, fell 0.6%.
Nvidia-supplier SK Hynix was down over 1% and South Korean peer and memory chipmaker Samsung fell 0.5%.
Shares of SoftBank Group fall following renewed pressure on AI-linked stocks
Separately, SoftBank considered acquiring U.S. chipmaker Marvell Technology Inc. earlier this year, Bloomberg recently reported citing people familiar with the matter.
The declines in Asian tech stocks also come after AI-related companies in the U.S. fell overnight
Qualcomm dropped almost 4%, despite strong quarterly results, after warning it could lose future Apple business. AMD, a strong performer Wednesday, slipped 7%, while Palantir and Oracle were down about 7% and 3%, respectively. Nvidia and Meta Platforms also finished lower.
The excitement surrounding AI has raised worries that markets might be experiencing a tech bubble. Some experts argue that the valuations of AI companies are starting to resemble the dot-com bubble of the late 1990s, with stock prices rising well beyond realistic profit forecasts.
The economic impact of artificial intelligence is undeniable and market bumps are inevitable, said Laura Cooper, global investment strategist at Nuveen.
“Still, it’s too soon to call a bubble. Today’s AI capex is being funded largely by cash-rich firms with solid balance sheets, not cheap credit or speculation,” she said. “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.”
