SoftBank Leads Decline in Japanese Tech Stocks as AI Spending Fears Spread to Asia

Tokyo: Japanese technology stocks fell sharply on Thursday, led by losses in SoftBank Group Corp, as concerns over slowing artificial intelligence infrastructure spending in the United States rippled across Asian markets.

SoftBank, one of Japan’s most prominent AI-focused investors, dropped as much as 7.25 percent during the session, making it one of the worst performers on the Nikkei 225 index. The broader benchmark fell 1.23 percent, underperforming regional peers. SoftBank later pared some losses but was still trading about 3 percent lower in afternoon trade.

The sell-off followed weakness in US technology stocks overnight, where the Nasdaq Composite slid 1.81 percent amid declines in major AI-linked names including Oracle, Broadcom and Nvidia.

US tech weakness weighs on Asia

Losses in Oracle shares were triggered after a Financial Times report said financing plans by Blue Owl Capital for a $10 billion data centre project in Michigan had stalled. Oracle had recently denied a separate report suggesting delays to some AI-related projects for OpenAI until 2028.

Investor sentiment toward AI infrastructure spending has become increasingly fragile, with markets reassessing the pace and scale of capital expenditure required to support large-scale AI deployment.

SoftBank’s shares have been particularly volatile over the past month as these concerns intensified. Earlier this year, the group announced plans to invest up to $500 billion in AI infrastructure projects in the United States alongside partners including OpenAI and Oracle. In September, it also unveiled five new US data centre sites under Stargate, OpenAI’s global AI infrastructure initiative.

Broader Japanese tech stocks slide

The weakness was not limited to SoftBank. Several other Japanese technology and semiconductor-related stocks declined sharply.

Semiconductor equipment maker Advantest fell as much as 5 percent, while Lasertec, Renesas Electronics and Tokyo Electron posted losses of between 3 percent and 4 percent.

Jesper Koll, expert director at Tokyo-based financial services firm Monex Group, said Japanese technology stocks are particularly sensitive to shifts in US AI investment.

“Much of what goes into data centres, power systems and AI hardware enablers is made in Japan,” Koll said, adding that any slowdown in US tech spending directly affects Japanese suppliers.

Export data highlights exposure

Japan’s latest trade data underscores that exposure. On Wednesday, official figures showed exports of electrical machinery rose 7.4 percent year-on-year, while semiconductor-related exports surged 13 percent.

According to analysts, the recent boom in US-led AI investment has driven strong demand for specialised Japanese equipment. However, that reliance also leaves the sector vulnerable when sentiment turns.

Mixed picture across Asia

Elsewhere in the region, losses were more muted. South Korea’s Samsung Electronics slipped 0.93 percent, while SK Hynix reversed earlier declines to gain 0.73 percent. Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, was marginally lower.

Market participants say further moves in Asian technology stocks are likely to remain closely tied to developments in US AI spending and signals from major global tech companies on capital expenditure plans.