Key Points
- Shares of SoftBank Group plunged as much as 9.2% Wednesday, leading losses across major technology firms in Asia.
- Other tech majors in Japan, as well as companies in South Korea, Taiwan and Hong Kong also tracked declines Wall Street declines spurred by losses in AI darling Nvidia.
Shares Japan’s SoftBank Group plunged as much as 9.2% Wednesday, as technology stocks in Asia declined, tracking losses in U.S. peers overnight.
The tech-focused investment firm saw shares drop for a second consecutive session, following its announcement of a $2 billion investment in Intel. Intel shares rose 6.97% to close at $25.31 Tuesday stateside.
Other Japanese tech stocks also declined, with semiconductor giant Advantest falling as much as 6.27%. Meanwhile, shares in Renesas Electronics and Tokyo Electron were last seen trading 2.46% and 0.75% lower, respectively.
Technology companies in South Korea, Taiwan and Hong Kong, also fell after U.S. tech stocks dropped overnight spurred by declines in artificial intelligence darling Nvidia’s shares.
U.S. Commerce Secretary Howard Lutnick is considering the federal government taking equity stakes in semiconductor companies that get funding under the CHIPS Act for building plants in the U.S, sources familiar with the matter told Reuters. The U.S. CHIPS and Science Act seeks to boost the country’s semiconductor industry, scientific research and innovation.
Shares of Taiwanese chip companies TSMC and Hon Hai Precision Industry — known globally as Foxconn — declined 1.69% and 2.16%, respectively. TSMC manufactures Nvidia’s high-performance graphics processing units that help power large language models, while Foxconn has a strategic partnership with Nvidia to build “AI factories.”
South Korean tech stocks mostly fell with shares of chipmaker SK Hynix down 3.33%. Samsung Electronics, however, rose 0.75%.
TSMC, Samsung and SK Hynix are among companies that have received funding under the CHIPS Act.
Over in Hong Kong, the Hang Seng Tech index lost 0.87% in early trade.
The worst performing stocks on the index were Kuaishou Technology, which declined 4.8%, JD Health International, down 3.31% and Horizon Robotics, which lost 2.29%.
Losses were also seen in tech majors Alibaba Group and Xiaomi Corp, down 1.44% and 1.34%, respectively.
