Shares of Softbank Group Corp plummeted by more than 13% on Friday, as concerns over artificial intelligence (AI) valuations and profitability triggered a broad sell-off in Asian technology stocks. The company is viewed as a bellwether for AI-related deals, and this decline puts it on track for one of its largest single-day percentage drops in nearly two years. Japan's benchmark Nikkei index fell over 4%, with other tech stocks like Advantest and Kioxia also dropping more than 9%. Similar to other AI-related stocks, SoftBank's share price has recently been caught in a pattern of intense volatility. Market sentiment towards AI stocks has been swinging between optimism about the technology's long-term prospects and pessimism regarding its near-term monetization potential and sky-high valuations. Analysts suggested the recent drop for this technology investment conglomerate may have been sparked by a report that ChatGPT developer OpenAI is considering a delay to its initial public offering (IPO). Citing informed sources, media reported on Thursday that OpenAI is leaning towards postponing its IPO until next year due to concerns about market volatility.
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