Japan’s SoftBank stock price fell over 13 per cent on Tokyo Stock Exchange on Wednesday, November 5, following a Wall Street sell-off driven by concerns over the high valuations of such firms.
SoftBank has wiped out almost $50 billion in market value over the past two days, with its shares falling more than 7 per cent on Tuesday as well.
However, SoftBank stock has proven to be a multibagger stock as it has surged nearly 206 per cent in just six months and 154 per cent in one year.
What’s behind the plunge?
SoftBank has developed a diverse portfolio of AI-focused investments across infrastructure, semiconductor, and application segments.
The company holds a controlling stake in U.K.-based Arm Holdings, whose chip designs are integral to mobile and AI processors, and it recently acquired Ampere Computing to enhance its AI data center operations. Shares of Nasdaq-listed Arm Holdings fell 4.71% overnight.
Other semiconductor and AI stocks also witnessed a downturn in Asian trading on Wednesday. Semiconductor testing equipment maker Advantest slipped over 8 per cent, meanwhile, chip manufacturer Renesas Electronics fell 6 per cent in Asian trading.
(This is a developing story)
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