SoftBank sinks as AI chip costs spark Asia tech selloff

SoftBank Sinks as AI Cost Fears Trigger Broad Asia Tech Selloff

SoftBank Group plunged in Tokyo on Friday, leading a wave of selling across Asian technology stocks as investors reacted to overnight losses on Wall Street sparked by Apple and Microsoft passing soaring semiconductor costs onto consumers.

Price Hikes Rattle Markets

The rout followed a volatile session in the United States on Thursday, where Apple shares fell more than 6% — their worst single-day drop since April 2025 — after the company announced price increases of $100 to $300 across its MacBook and iPad lineups. Hours later, Microsoft revealed that Xbox console prices would rise by $100 to $150 effective August 1, citing memory and storage costs that have increased 2.5 times since October.cbsnews

Both companies pointed to the same culprit: a worsening shortage of memory chips driven by insatiable demand from AI data centers. Apple CEO Tim Cook told The Wall Street Journal earlier this month that price increases were “unavoidable,” warning that the company could no longer absorb the rising costs being passed along by chip suppliers. According to Counterpoint Research, memory contract prices surged 80% to 90% in the first quarter of 2026 alone, following a 50% increase in the final quarter of 2025.forbes

Damage Spreads Across Asia

The Nasdaq Composite slipped 0.6% on Thursday as Apple dragged the index lower, even as Micron Technology surged more than 14% on blowout earnings that underscored the very supply crunch pressuring consumer electronics makers. The S&P 500 edged down 0.1%.investopedia

In Asia on Friday, SoftBank’s shares tumbled sharply from their previous close of 7,244 yen, with the stock falling to as low as 6,530 yen intraday. South Korea’s semiconductor heavyweights also came under pressure, with SK Hynix and Samsung Electronics declining after a strong rebound session on Thursday, when the Kospi had surged 5.4% and SK Hynix had jumped 13.1%.usnews

A Familiar Pattern

The selloff marks the latest episode of whiplash for Asian tech stocks, which have swung violently throughout June as investors weigh the enormous profits flowing to chip makers against the margin pressure building on their downstream customers. SoftBank, whose shares have dropped more than 20% from their early June highs, remains particularly sensitive to shifts in AI sentiment given its large stakes in companies including OpenAI and Arm Holdings. Analysts at Goldman Sachs and Morgan Stanley expect the chip shortage to persist, keeping memory prices elevated at least through 2027.group