SoftBank Group Shares Plunge Over 9% Amid Asian Tech Stocks Following U.S. Market Declines

Japanese tech giant SoftBank Group’s shares plunged 9.2% on Wednesday as technology stocks across Asia fell, mirroring losses in U.S. markets overnight. SoftBank, a tech-focused investment firm, faced a second consecutive day of decline despite announcing a $2 billion investment in Intel, whose shares had risen 6.97% to close at $25.31 on Tuesday in the United States. The drop in SoftBank shares highlights investor caution in response to global tech market volatility, even amid strategic investments aimed at strengthening its portfolio.

Other Japanese technology firms also faced significant losses. Semiconductor giant Advantest fell as much as 6.27%, while shares of Renesas Electronics and Tokyo Electron traded 2.46% and 0.75% lower, respectively. These declines reflect the broader negative sentiment in the Asian tech sector, which has been influenced by investor reactions to the performance of U.S. technology stocks, particularly in the artificial intelligence (AI) space. Nvidia, a major AI-driven tech stock in the United States, experienced a sharp decline, which spilled over to Asian markets and affected tech companies across multiple countries.

South Korea, Taiwan, and Hong Kong also reported losses in their technology sectors. Taiwanese semiconductor companies TSMC and Hon Hai Precision Industry (Foxconn) saw declines of 1.69% and 2.16%, respectively. TSMC is a key manufacturer of Nvidia’s high-performance graphics processing units, which are crucial for large language model operations, while Foxconn has a strategic partnership with Nvidia to develop “AI factories.” In South Korea, chipmaker SK Hynix shares fell 3.33%, while Samsung Electronics slightly increased by 0.75%, showing mixed performance in the Korean market. These companies are also among the firms receiving funding under the U.S. CHIPS and Science Act, which aims to boost domestic semiconductor production, scientific research, and technological innovation.

The U.S. Commerce Secretary, Howard Lutnick, has indicated that the federal government is considering taking equity stakes in semiconductor companies receiving CHIPS Act funding to encourage domestic plant construction. This initiative reflects the U.S. government’s strategic effort to secure semiconductor supply chains and strengthen technological competitiveness.

In Hong Kong, the Hang Seng Tech Index fell 0.87% during early trading. The worst-performing stocks in the index included Kuaishou Technology, which declined 4.8%, JD Health International down 3.31%, and Horizon Robotics losing 2.29%. Other tech majors such as Alibaba Group and Xiaomi Corp. also experienced losses of 1.44% and 1.34%, respectively. These declines indicate the ongoing vulnerability of technology stocks in Asia to global market fluctuations, particularly those linked to U.S. equities and AI developments.

Overall, the combination of investor caution, global market volatility, and sector-specific factors such as semiconductor supply chain concerns and AI-driven performance created a challenging trading environment for technology companies across Asia. The declines underscore the interconnectedness of global tech markets, where U.S. market movements directly influence Asian stock performance. SoftBank’s substantial investment in Intel demonstrates its strategy to mitigate risks through diversification and strategic positioning, yet it remains susceptible to broader market dynamics. Similarly, semiconductor companies in Taiwan, South Korea, and Japan are navigating uncertainty, even with government support under the CHIPS Act, highlighting the complex interplay of domestic policies, international investments, and investor sentiment shaping the technology sector in Asia.