AI concerns hit tech stocks, SoftBank posts net loss for first time in nearly two years

On November 10, SoftBank announced its first net loss in nearly two years. Market concerns over AI spending and demand had previously weighed on the tech investment giant's major portfolio holdings. SoftBank recorded a loss of 1.12 trillion yen ($7.1 billion) in the second fiscal quarter, a sharp reversal from the profit posted in the same period last year.

Declines in shares of chipmaker Arm, Intel, and 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, reported a loss of 81.6 billion yen. SoftBank is increasingly viewed as a bellwether for sentiment surrounding OpenAI and the broader AI sector.

Since reaching an all-time high in June, SoftBank's stock has plummeted by more than 50%. This decline stems from market concerns over the company's debt-fueled investments in AI at scale, as well as fears that a landslide Democratic victory in the U.S. midterm elections could stall numerous ventures under Masayoshi Son's leadership.