SoftBank Share Price Plunges 11% Amid Global Tech Sell-Off Over AI Valuation Fears

SoftBank Group shares tumbled more than 11% on Thursday, extending a wider sell-off across global technology markets. The decline came as investors pulled back from high-growth tech stocks following recent gains, triggering profit-taking across Asia, the U.S., and Europe-linked markets.

The Japanese investment giant, once briefly crowned Japan’s most valuable company ahead of Toyota, was among the hardest hit as sentiment in the tech sector turned cautious.

The sharp decline reflects growing investor concerns over SoftBank’s aggressive investment strategy in artificial intelligence. While the company has surged roughly 70% year-to-date on AI optimism, some analysts are now questioning whether valuations have run too far, too fast.

Market watchers say the sell-off is less about fundamentals and more about short-term correction after a prolonged rally driven by AI hype.

Despite the downturn, SoftBank CEO Masayoshi Son remains highly optimistic about artificial intelligence. Speaking to CNBC, he predicted the AI revolution could be “50 times larger” than the dot-com boom of the early 2000s.

He also suggested that market corrections are natural and could ultimately present long-term buying opportunities for investors willing to hold through volatility.

SoftBank was not alone in the downturn. Major Asian tech players also recorded losses, including Taiwan’s TSMC, South Korea’s Samsung, and SK Hynix. Foxconn also dropped more than 4%, while chip-related stocks across the region saw similar pressure.

In the U.S., tech giants such as Nvidia, Alphabet, and Amazon also slipped, reinforcing the global nature of the sell-off.

Analysts say the market is increasingly focused on short-term performance rather than long-term AI growth potential. A Deutsche Bank note highlighted that investors are struggling to balance optimism around AI with concerns over stretched valuations.

SoftBank last traded at 7,377 yen, reflecting a significant pullback as global investors reassess risk exposure in the fast-moving tech sector.

source: cnbc