SoftBank shares plunge over 8% in global AI sell-off

SoftBank shares fell over 8% in Tokyo amid a global AI sell-off, extending losses from a 10% plunge earlier this week. The stock logged its worst day since April. Investors are cashing out of high-flying AI stocks amid concerns of inflated valuations. Major U.S. tech names, including Qualcomm, AMD, Palantir, Oracle, Nvidia and Meta, also ended lower. In Japan, semiconductor firms Advantest, Renesas Electronics and Tokyo Electron slid, while South Korea’s SK Hynix reported losses. Market strategists cite slowing chip orders, rising funding costs and longer AI adoption timelines as key drivers. The broader tech sector saw AI stocks retreat across markets. Under CEO Masayoshi Son, SoftBank’s heavy AI bets via Vision Funds and investments in Arm, robotics and data infrastructure face scrutiny. Traders should watch upcoming earnings and central bank policies for clues on market stability. These tech losses may weigh on risk assets, including cryptocurrencies.