SoftBank sinks over 10% as Nvidia-fueled rout sweeps Asian chip names

Asian semiconductor stocks experienced significant declines on Friday, with SoftBank leading the downturn following Nvidia's unexpected stock drop. Despite Nvidia announcing stronger-than-anticipated earnings and an optimistic forecast, its shares fell by over 3% in the U.S. on Thursday, triggering a ripple effect across the region. In Tokyo, SoftBank’s shares plummeted more than 10%. The Japanese tech giant, which recently sold off its Nvidia holdings, still retains control over British semiconductor firm Arm, known for supplying Nvidia with crucial chip architecture and designs. Additionally, SoftBank is heavily invested in various AI projects leveraging Nvidia technology, including the ambitious $500 billion Stargate initiative for U.S. data centers. Other major players in the semiconductor sector also faced losses. South Korea's SK Hynix, a leading supplier of high-bandwidth memory for AI applications, saw its stock drop by nearly 10%. Samsung Electronics, another supplier for Nvidia, fell by over 5%. In Taipei, Taiwan Semiconductor Manufacturing Company, the largest contract chipmaker globally and a manufacturer of Nvidia chip designs, experienced a decline of over 4%. Meanwhile, Foxconn, known for producing server racks tailored for AI workloads, dipped by 4%. The downturn affected not only large corporations but also smaller chip manufacturers. In Japan, Renesas Electronics, a significant Nvidia supplier, saw its stock decrease by 2.3%, while Tokyo Electron, which provides essential equipment to chip foundries, fell by 5.32%. Similarly, Lasertec, another Japanese chip equipment manufacturer, reported a decline of over 3.5%. The market's reaction highlights the volatility and interconnectedness of the semiconductor industry following Nvidia's recent performance.