SoftBank shares fell sharply on June 4 as a tech sell-off spread across global markets. The stock dropped more than 11% in Tokyo, showing strong selling pressure in the market.
The fall started after US tech stocks moved lower overnight. Many investors booked profits after recent gains, which pushed prices down across the sector. This trend quickly reached Asia and affected major companies like TSMC and Foxconn.
SoftBank shares gained nearly 70% earlier this year with strong interest in AI. However, investors are now cautious about high prices and risky bets in the AI space.
Masayoshi Son, Head of SoftBank Group, maintained a positive view on the future. He said AI could grow much bigger than the internet boom of the early 2000s. He also said that such market crashes can create good opportunities for long-term investors.
Market experts say many investors now focus more on short-term price moves. A note from Deutsche Bank explained that this behavior increases volatility in stock prices.
The tech sell-off also hit other big Asian companies. Shares of Samsung and SK Hynix declined after strong gains in recent months. Investors chose to book profits after high valuations.
TSMC saw a minor drop, while Foxconn fell more sharply. The weakness followed losses in the US, where NVIDIA, Amazon, and Alphabet also closed at lower prices.
SoftBank shares also reacted to recent company activity. The firm sold a small stake in Lenskart, raising billions of rupees. This move added to discussions about its investment plans and cash position.
The long-term outlook for AI still looks strong, but short-term risks remain. Investors are now balancing future growth with current market uncertainty.
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