SoftBank Shares Tumble Amid AI Stock Selloff

Benzinga

SoftBank shares fell nearly 7% Friday, extending a 20% weekly drop as investors pulled back from AI-related stocks. The firm, seen as a proxy for OpenAI exposure, was hit as markets reassessed lofty AI valuations. Arm and other tech names also declined, though analysts say it’s too early to declare an AI bubble.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02SoftBank shares fell nearly 6.87% Friday amid a global sell-off in AI-related stocks,

00:08capping a 20% weekly drop and raising almost $50 billion in market value,

00:12according to CNBC. The client filed renewed caution over AI valuations and uncertainty

00:17around OpenAI's funding prospects. Analysts said SoftBank, viewed as a listed proxy for OpenAI,

00:22is being hit as investors reassess expectations for the sector.

00:25Armed Holdings, in which SoftBank sold a controlling stake,

00:28also fell along with other chip and tech firms across Asia and the U.S.

00:32Analysts warned that soaring AI stock valuations are beginning to resemble the dot-com bubble,

00:37prices outpacing profit expectations.

00:40Newbeat strategist Laura Cooper said it's too early to call a bubble,

00:43learning that AI investments are supported by strong corporate balance sheets rather than speculation.

00:47For all things money, visit Benzinga.com.

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