On Wednesday, SoftBank Group SFTBF SFTBY shares fell sharply in Tokyo as investors reacted to its $2 billion investment in Intel Corp INTC, with broader Asian technology stocks sliding in tandem after a U.S. market pullback led by Nvidia Corporation NVDA.
SoftBank Shares Slide 7.64% In Tokyo After $2 Billion Intel Stake
SoftBank shares sank 7.64% in the Japanese capital, marking a second consecutive session of heavy losses. The drop followed the company's announcement earlier this week of a $2 billion stake in Intel.
In New York, SoftBank's U.S.-listed OTC shares also fell, with SFTBF sliding 5.73% and SFTBY dropping 7.28% during Tuesday’s regular-hours trading.
While Intel stock jumped 6.97% to $25.31 in New York trading on Tuesday during the regular session, it retreated 1.15% to $25.02 in the after-hours trading, according to Benzinga Pro.
The development comes as Intel faces growing headwinds, with its foundry division posting an $18.8 billion loss in 2024 despite receiving $8.5 billion in U.S. subsidies.
Moreover, in Japan, chip testing equipment maker Advantest dropped as much as 5.65%, while Renesas Electronics fell 2.96% and Tokyo Electron slid 1.30%.
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Asian Tech Stocks Follow Nvidia Lower
The sell-off extended beyond Japan, hitting semiconductor and technology companies across the region after Nvidia shares fell 3.50% Tuesday and slipped further in after-hours trading.
Nvidia has been at the center of the AI boom and its stock movements often ripple across global markets.
Taiwan Semiconductor Manufacturing Co. TSM, the world's largest contract chipmaker, fell 3.60%, while iPhone assembler Foxconn, also known as Hon Hai Precision Industry, declined 3.37%.
Both firms maintain close ties with Nvidia, with TSMC manufacturing its GPUs and Foxconn partnering on so-called "AI factories."
In South Korea, SK Hynix lost 3.61% and Samsung Electronics SSNLF edged down 0.21%. Chinese tech majors also slipped, with Alibaba Group BABA down 1.16% and Xiaomi XIACF off 0.29%.
CHIPS Act Oversight Raises Investor Concerns
Adding to the jitters, on Tuesday, Reuters reported that U.S. Commerce Secretary Howard Lutnick is considering whether Washington should take equity stakes in semiconductor companies receiving subsidies under the CHIPS Act.
The law, aimed at boosting U.S. chipmaking and scientific innovation, has already provided funding to companies including TSMC, Samsung and SK Hynix.
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