AI Concerns Hit Tech Stocks as SoftBank Records First Net Loss in Nearly Two Years

Odaily: SoftBank has reported its first net loss in nearly two years. Market concerns over spending and demand in the artificial intelligence sector have weighed on the major holdings of this tech investment giant. SoftBank posted a loss of 1.12 trillion yen ($7.1 billion) in its second fiscal quarter, a sharp reversal from a profit in the same period last year.

Share price declines at chipmakers Arm and Intel, as well as South Korean e-commerce giant Coupang, dragged down SoftBank's overall performance. The Vision Fund division, which manages equity stakes in hundreds of tech startups, recorded a loss of 81.6 billion yen. SoftBank is increasingly seen as a "bellwether" for sentiment toward OpenAI and the broader AI sector.

Since hitting an all-time high in June, SoftBank's stock has plunged more than 50%. This stems both from market concerns about its borrowing to fund large-scale AI investments and from worries that a sweeping Democratic victory in the U.S. midterm elections could stall many of Masayoshi Son's projects. (Jinshi)