SoftBank Group Shares Slide as AI Rollercoaster Trade Continues

By Yang Jie

Shares of SoftBank Group Corp. fell over 13% Friday as worries about valuations and profitability in artificial intelligence spurred a broad selloff across Asia technology stocks.

The drop in SoftBank, seen as a proxy for the AI trade, puts the stock on track for one of its biggest one-day percentage losses in nearly two years. Japan's benchmark Nikkei index was down over 4%, with other tech names like Advantest and Kioxia dropping over 9% each.

Like other AI plays, SoftBank shares have been caught in a pattern of sharp swings recently as market sentiment toward AI-related equities flits between euphoria over the technology's long-term promise and pessimism regarding near-term monetization and sky-high valuations.

Analysts say the latest downturn in the tech investment conglomerate's stock was likely triggered by a report that ChatGPT maker OpenAI is considering delaying its initial public offering.

In a report on Thursday citing sources familiar with the matter, the New York Times said OpenAI is leaning toward holding off its initial public offering until next year due to concerns around market volatility.

OpenAI didn't immediately respond to a request for comment sent on Friday.

A delay of OpenAI's blockbuster IPO would be seen as a headwind for SoftBank, which is building up an approximately 13% stake in the AI pioneer worth $64.6 billion. When news of the ChatGPT maker's plans to go public started making the rounds in May, SoftBank's shares surged nearly 20%.

An overnight drop in shares of SoftBank's chip design subsidiary, Arm Holdings, likely also contributed to the negative mood.

Friday's decline caps a roller-coaster week for SoftBank's stock, which ended the previous session 8% higher but slumped 10% on Monday. Tech names elsewhere in Asia have experienced similar volatility, exemplified by the huge gains and losses in South Korea's tech-heavy Kospi index - another AI proxy.

Despite the recent chill that has swept the tech sector, some say it's too early to call the end of the AI rally just yet.

SoftBank's stock remains 42% higher year to date and its founder and chief executive, Masayoshi Son, expected the AI momentum to continue saying earlier this week that the world is only at the very beginning of the AI revolution that will re-define every industry.

Earlier in the week, blowout guidance from Micron sparked a furious rebound in AI-related shares. Tickmill Group's Patrick Munnelly said the market reaction suggests investors are still willing to treat AI as a boom rather than a bubble.

News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI.

Write to Yang Jie at jie.yang@wsj.com

(END) Dow Jones Newswires

June 26, 2026 00:12 ET (04:12 GMT)