SoftBank plunges 13%, SK Hynix slides 10% as Asia tech rout tracks declines in the U.S
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SoftBank Group plunged more than 13% on Friday, leading a broad selloff in Asian technology stocks, amid mounting concerns over the rising cost of artificial intelligence infrastructure.

The Japanese conglomerate led losses across the region after the Nasdaq Composite fell for a fourth straight session overnight. The tech-heavy index dropped 0.46% as a 6% plunge in Apple overshadowed Micron's stronger-than-expected earnings.

SoftBank Group could remain under pressure after its chip designer Arm Holdings fell 3.2% overnight, underperforming the broader semiconductor sector even as AI-related stocks rebounded sharply.

Andrew Jackson, an equity strategist at Ortus Advisors, said investor enthusiasm for SoftBank may also be capped by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.

Qualcomm's new AI data center chip deal with Meta is ultimately positive for Arm through royalty payments, Jackson added. However, Arm also faces growing competition as Qualcomm expands more aggressively into the central processing unit market.

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The weakness also spilled into Asia's semiconductor sector. South Korea's SK Hynix fell more than 10%, while Samsung Electronics lost around 9%. Technology-focused investment holding company SK Square was down around 11%, while LG Electronics was 6.8% lower.

Japan's Advantest declined more than 10%, while Tokyo Electron was similarly down more than 5%. Taiwan's TSMC fell 1.88%, while Hon Hai was 2.91% lower.

The selloff extended across Greater China's technology sector. Hong Kong-listed Tencent fell around 2%, while Alibaba dropped 5%, Baidu lost nearly 4% and Xiaomi slid 3.5%. Chip stocks were among the hardest hit, with Semiconductor Manufacturing International Corp (SMIC) tumbling more than 6%.

Overnight on Wall Street, Apple led declines after announcing price increases for its MacBook and iPad products, citing higher component costs, including chips.

This has fueled concerns that soaring semiconductor prices could eventually squeeze the margins of major technology companies.

Microsoft fell 3.5% after raising prices on Xbox consoles, while Alphabet and Meta Platforms also declined.