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Published on
August 20, 2025
5 min read
SoftBank Group Stock Plunges Over 9% Following U.S. Tech Selloff
SoftBank Group’s stock plunged as much as 9.2% on Wednesday, 20th August, according to CNBC. The tech-focused investment firm saw its shares fall for a second straight session after announcing a $2 billion investment in Intel. In contrast, Intel’s stock jumped 6.97% to close at $25.31 in U.S. trading on Tuesday. Advantest dropped as much as 6.27%, while Renesas Electronics and Tokyo Electron were down 2.46% and 0.75%, respectively.
Tokyo Trading Session Impact
SoftBank’s shares fell over 9 percent in Tokyo, marking a second consecutive session of heavy losses for the Japanese conglomerate. SoftBank shares sank 7.64% in the Japanese capital, marking a second consecutive session of heavy losses. The decline extended beyond Tokyo, with SoftBank’s US-listed over-the-counter shares also falling significantly.
Shares of Taiwanese chipmakers TSMC and Hon Hai Precision Industry fell 1.69% and 2.16%, respectively. TSMC manufactures Nvidia’s high-performance GPUs used to power large language models, while Foxconn has a strategic partnership with Nvidia to build “AI factories.”
Intel Investment Concerns
The timing of the plunge in SoftBank Group shares amid Asian tech decline coincided with investor reactions to the firm’s recently announced $2 billion investment in Intel Corp. The drop followed the company’s announcement earlier this week of a $2 billion stake in Intel. Many investors expressed concern about this significant bet on the struggling US chipmaker.
SoftBank Group stock fell for a second consecutive day, pressured by a broad selloff in US technology shares and ongoing investor anxiety over its new $2 billion investment in Intel Corp. The Intel investment raised questions about SoftBank’s investment strategy and timing, particularly given Intel’s recent operational challenges.
Global Market Contagion
The decline demonstrated how US tech losses ripple to Asian markets in today’s interconnected global economy. SoftBank Group shares tumbled for a second straight day, dropping as much as 9.2% on Wednesday after a hefty Intel investment and a sudden dip in US tech stocks rattled investors.
The selloff began with major US technology companies, particularly semiconductor stocks, led by Nvidia’s decline. This negative sentiment quickly spread to Asian markets during Wednesday’s trading session, affecting technology companies across the region.
Investment Portfolio Impact
The sharp decline raises concerns about the valuation of SoftBank’s extensive investment portfolio, which includes stakes in numerous technology companies worldwide. The investment firms’ reputation as a global tech heavyweight comes with big risks, especially now. SoftBank’s Vision Fund and other investment vehicles hold significant positions in technology companies that have been affected by recent market volatility.
The stock decline highlights how SoftBank’s business model, heavily dependent on technology investments, makes it vulnerable to broader sector downturns and market sentiment shifts.
