On Friday, SoftBank Group experienced a significant decline of more than 12%, leading a selloff in Asian technology stocks. This downturn was influenced by a 0.46% drop in the Nasdaq Composite, which fell for the fourth consecutive session, primarily due to a 6% decline in Apple shares despite Micron's better-than-expected earnings.
The pressure on SoftBank was exacerbated by a 3.2% drop in its chip designer Arm Holdings, which underperformed the semiconductor sector even as AI-related stocks saw a rebound.
Andrew Jackson, an equity strategist at Ortus Advisors, noted that investor interest in SoftBank could be limited by reports of OpenAI potentially delaying its IPO until next year, as it struggles to meet demand at a $1 trillion valuation.
While Qualcomm's new AI data center chip deal with Meta could benefit Arm through royalty payments, Arm faces increasing competition from Qualcomm's aggressive expansion into the CPU market. The negative sentiment extended to Asia's semiconductor sector, with notable declines in companies like SK Hynix, Samsung Electronics, and Japan's Advantest.
The overall market sentiment was further impacted by Apple announcing price increases for its MacBook and iPad products, which raised concerns about the potential squeeze on margins for major tech companies due to rising semiconductor prices.
Other tech giants, including Microsoft, Alphabet, and Meta Platforms, also saw declines, reflecting a broader trend of caution among investors in the technology sector