SoftBank Plummets 12% — Asian Tech Stocks Follow Suit
By John Nada·Jun 26, 2026·4 min read
SoftBank's 12% fall leads tech stock declines across Asia amid rising AI infrastructure costs and Nasdaq's overnight slump.
SoftBank Group, a major player in the global technology investment landscape, experienced a dramatic decline of over 12% on Friday. This notable drop led a widespread downturn across Asian tech stocks, indicating a region-wide reaction to escalating concerns about the costs associated with artificial intelligence infrastructure. The ripple effects of this decline were felt far and wide, with several key technology stocks across Asia experiencing similar downturns.
The decline in SoftBank shares coincided with a broader selloff on the Nasdaq Composite, which has been under pressure, falling for the fourth consecutive session. The tech-heavy index saw a decline of 0.46%, significantly influenced by a sharp 6% drop in Apple’s stock price. This overshadowed the robust earnings report from Micron, which had surpassed market expectations. Despite an overall resurgence in AI-related stocks, SoftBank's chip designer, Arm Holdings, could not escape the negative sentiment, falling 3.2% and underperforming within the semiconductor sector.
SoftBank's struggles can also be attributed to external factors affecting market sentiment. Reports indicating that OpenAI might delay its initial public offering have added to investor unease. The delay is reportedly due to challenges OpenAI faces in meeting a $1 trillion valuation, a figure that represents a significant milestone and a potential indicator of broader market expectations for AI companies.
In the context of AI infrastructure costs, Qualcomm's recent deal with Meta concerning AI data center chips presents a mixed picture for Arm Holdings. While this deal is ultimately positive for Arm through anticipated royalty payments, the competitive landscape is becoming increasingly challenging. Qualcomm’s aggressive expansion into the central processing unit (CPU) market poses a direct threat, intensifying the competitive pressures on Arm and potentially influencing its market positioning and revenue streams.
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The repercussions of SoftBank's decline were not limited to Japan. The selloff extended to other major semiconductor players across Asia. In South Korea, SK Hynix saw a significant drop of more than 8%, while Samsung Electronics shed approximately 9%. The declines were not confined to these companies alone; SK Square, a technology-focused investment holding company, witnessed a fall of around 9.43%, and LG Electronics saw its shares drop by 3.5%. In Japan, Advantest, a semiconductor test equipment maker, fell by nearly 10%, and Tokyo Electron, a major semiconductor equipment manufacturer, decreased by 3.21%.
Taiwan's technology sector was equally affected, with Taiwan Semiconductor Manufacturing Company (TSMC), a key player in the global semiconductor industry, falling by 2.09%. Hon Hai Precision Industry, known for its role in manufacturing electronic components, also suffered, with a decline of 3.5%.
The impact of the selloff was felt in the Greater China region as well. In Hong Kong, Tencent Holdings, one of the largest technology companies, fell by around 2%. Alibaba Group, a significant player in e-commerce and cloud computing, saw a more substantial decline of over 6%. Meanwhile, Baidu, often referred to as the 'Google of China', and Xiaomi, a leader in consumer electronics and smart manufacturing, recorded losses of over 4% and 3.7%, respectively. Semiconductor Manufacturing International Corporation (SMIC), a key player in China's chip manufacturing sector, experienced a significant drop of more than 6.9%.
The pressures on tech stocks are magnified by developments on Wall Street, particularly concerning Apple. The company's decision to increase prices for its MacBook and iPad products, attributed to rising component costs such as chips, has exacerbated investor concerns about the tech sector's profitability. These price hikes reflect the broader trend of rising semiconductor costs, which could potentially compress the profit margins of major technology companies. Microsoft, another tech giant, saw its shares fall by 3.5% following similar price adjustments for its Xbox gaming consoles. Alphabet, the parent company of Google, and Meta Platforms, the owner of Facebook, also experienced declines.
The broader implications of this selloff are multifaceted, raising critical questions regarding the sustainability of current tech valuations. As the costs of AI infrastructure continue to rise, there is growing speculation about whether the industry's profit margins can withstand such pressures. This situation underscores the delicate balance tech companies must maintain between innovation and financial viability, particularly in a landscape characterized by rapid technological advancements and intense market competition.