SoftBank's Stock Price Plunges Again, Two Days of Sharp Declines Draw Attention
Japanese tech investment giant SoftBank Group's stock has come under significant pressure this week. Following a sharp fall last weekend, its stock faced strong selling once again on Tuesday, with intraday declines expanding to over 11%, marking an 11-week low. This continuous downward trend has quickly garnered market attention, with investors concerned that SoftBank's key AI investments are facing increasingly fierce market competition.
Notably, while SoftBank's stock is undergoing a major correction, other Japanese AI sector stocks have mostly followed the global chip sector's rise, creating a marked split in performance.
Google's Gemini 3 Popularity Rises, Raising Questions on OpenAI's Competitiveness
The direct trigger for SoftBank's stock setback is Alphabet's launch of its latest Gemini 3 AI model, which has received widespread acclaim. Several analysts have pointed out that Google's latest model has shown greater competitiveness in inference, generation, and processing capabilities, prompting the market to reassess the relative positions of major companies in the AI sector.
SoftBank has long maintained close investment and cooperative ties with OpenAI, one of the industry leaders, and has previously attracted significant capital attention due to its technological advantages. However, with competitors rapidly iterating, concerns have arisen that OpenAI's leading edge might be eroding.
Analyst Yamada notes, "The market realizes that large tech companies are accelerating the update of AI models, which could alter the industry landscape. For SoftBank, which bets on OpenAI, this undoubtedly increases future uncertainty."
Market Value Massively Shrinks from Peak, Investor Risk Appetite Clearly Declines
Just a month ago, SoftBank's market value had surpassed 40 trillion yen, becoming the second Japanese company after Toyota to reach this scale. However, alongside the sharp drop in stock price, its market value has now evaporated by over 40%, characterized by severe valuation volatility.
Investment institutions believe that SoftBank's deep stock adjustment reflects not only concerns over the AI investment portfolio's prospects but also a general reduction in technology risk exposure among investors in a high-volatility market environment.
Additionally, SoftBank's Vision Fund previously experienced significant fluctuations in book value during the cooling period of the tech cycle, leading the market to remain cautious about the stability of its asset portfolio.
AI Competitive Landscape Accelerates Evolution, SoftBank Bets Face Repricing Risk
The current AI industry's competition is heating up rapidly. Companies like Google, Meta, and Anthropic are continuously releasing upgraded models, driving industry iteration speed. With intensifying competition, AI companies must continuously invest in technological breakthroughs, commercialization, and computing power resources, making the position of industry leaders more uncertain.
As a key player in the global tech investment field, SoftBank's layout in AI foundational model companies is regarded as a strategic bet. But with fierce technological route competition, investors worry that SoftBank might face continuous valuation corrections.
Market experts point out, "The winners in AI are yet to be determined, and SoftBank's strong reliance on a single technology system makes investors adopt a more cautious attitude in the short term."
Short-term Trends Under Pressure, but Long-term Prospects Depend on AI Ecosystem Evolution
Despite the recent consecutive declines in stock price, some analysts believe that SoftBank's strategic layout in AI, communications, and semiconductors still holds long-term potential. If OpenAI and other core assets can maintain a leading position in future technological competition, SoftBank's valuation might have room to rise again.
However, from the current market reaction, investors are clearly more concerned about the short-term volatility risks brought by intensified competition. In the coming weeks, how SoftBank responds to the AI competitive landscape and whether it discloses further AI investment strategies will become crucial factors affecting its stock price.
