SoftBank's shares down 10% amid broader tech sell-off

SoftBank's shares plummeted by 10% after a significant sell-off in the U.S. tech market triggered widespread profit-taking. This downturn affected several other major Asian technology firms, leading to a ripple effect across the sector. Despite recently surpassing Toyota Motor to become Japan's most valuable company, SoftBank is facing scrutiny over its high-risk investments in artificial intelligence. The company's stock has surged approximately 70% this year, fueled by investor optimism surrounding AI advancements. CEO Masayoshi Son expressed his belief to CNBC that the impending AI revolution could dwarf the dot-com boom of the early 2000s. He remarked, "Historically, electronics and motorization experienced a crash in 1929, yet they thrived for many years beyond that. While corrections may occur, they present the best investment opportunities." Market analysts are observing a trend where investors are increasingly focused on short-term gains without fully grasping the long-term potential of their investments. Deutsche Bank analyst Peter Milliken noted that the market seems to be fixated on immediate momentum rather than developing detailed projections for the future. In South Korea, tech giants Samsung and SK Hynix also saw declines in their stock prices, with drops of 1.25% and 2.75%, respectively, following a period of profit-taking after both companies achieved market valuations exceeding $1 trillion earlier this year. As of the latest trading, SoftBank's shares were recorded at 7,434 yen, reflecting a 10.6% decrease.