SoftBank sinks 11% as Asia tech rout tracks declines in the U.S.

June 26, 2026 - 07:33

SoftBank Group saw its shares tumble more than 11% on Tuesday, dragging down a wide swath of Asian technology stocks as investors reacted to deepening worries about the soaring costs of artificial intelligence infrastructure. The selloff mirrored a sharp decline in U.S. tech shares overnight, where major indexes fell on fears that massive spending on AI data centers and chips may not deliver expected returns anytime soon.

The Japanese conglomerate, which holds significant stakes in companies like Arm Holdings and various AI startups, bore the brunt of the rout. Analysts pointed to SoftBank's heavy exposure to high-growth tech bets that are now under pressure as borrowing costs remain elevated and investor patience wears thin. Shares of other Asian tech heavyweights, including South Korea's Samsung Electronics and Taiwan's TSMC, also dropped, though by smaller margins.

The broader market anxiety stems from a growing realization that the AI boom requires enormous capital outlays for hardware, energy, and specialized chips, with no clear timeline for profitability. SoftBank's founder Masayoshi Son has been vocal about his vision for an AI-driven future, but the latest selloff suggests that investors are questioning whether the payoff will come soon enough to justify current valuations. The Nikkei 225 index fell more than 2% in Tokyo, while other regional benchmarks also slid, as the tech rout showed no signs of easing.