SoftBank Shares Plummet Over 10% In Japan Amid Valuation Jitters — Arm Holdings, Samsung, SK Hynix Also Feel The Heat

Shares of SoftBank Group (OTC:SFTBY) fell by 10% in Japan on Wednesday, reflecting a broader decline in AI-related stocks amid growing valuation concerns.

The stock closed down at JPY 22,640 ($147.21), wiping off about $13 billion from CEO Masayoshi Son’s net worth, according to Forbes’ Real-Time Billionaires List.

Samsung, ARM Holdings Join Softbank’s Fall

SoftBank Group’s decline was part of a larger trend affecting AI-linked companies, with investors expressing apprehension about inflated valuations in the market’s most popular trade.

SoftBank Group holds a majority stake in the U.K.-based Arm Holdings (NASDAQ:ARM). The group also recently acquired Ampere Computing to bolster its AI data-center capabilities. In response to the market’s concerns, Arm Holdings, which is listed on the Nasdaq, saw its shares drop by 4.71%.

Similarly, South Korean memory chip giants Samsung Electronics (OTC:SSNLF) and SK Hynix experienced a 4.1% and 1.19% decrease in their shares, respectively, in Kospi on Wednesday.

See Also: Mark Cuban Says Any Billionaire Claiming They Could Do It All Over Again Is ‘Lying Their A** Off’

AI Stocks Tumble Despite Strong Palantir Earnings

The share drop is part of a larger trend affecting AI-related companies. On Tuesday, the AI market experienced a significant downturn, with over $500 billion in market value being erased in a single day, despite upbeat Palantir Technologies Inc. (NASDAQ:PLTR) earnings. This shift in sentiment suggests that strong earnings are no longer sufficient to sustain the soaring stock prices of overbought tech companies.

Amid this market turmoil,  CEO Alex Karp publicly criticized short-sellers, including investor Michael Burry, for betting against the company. Karp remarked that it was odd for the most profitable companies to be singled out, arguing that betting against the firms propelling the AI industry made little sense.

This was followed by strong rebuttals from industry experts, such as Wedbush’s Dan Ives, who dismissed Burry’s warnings as “yelling fire in a crowded theater.” Ives contended that the renowned investor is fundamentally misreading the company's long-term direction.

READ NEXT:

• What Analysts Are Saying About Palantir Technologies Stock

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.