GoKawiilThe logo of Japanese company SoftBank Group at the company's headquarters in Tokyo on Nov. 21, 2025.
Tech stocks sold off on Friday amid mounting concerns over the rising cost of artificial intelligence infrastructure.
SoftBank Group , which plunged more than 12%, led losses across the region after the Nasdaq Composite fell for a fourth straight session overnight. The tech-heavy index dropped 0.46% as a 6% plunge in Apple overshadowed Micron 's stronger-than-expected earnings.
The Japanese conglomerate could remain under pressure after its chip designer Arm Holdings fell 3.2% overnight, underperforming the broader semiconductor sector even as AI-related stocks rebounded sharply.
Andrew Jackson, an equity strategist at Ortus Advisors, said investor enthusiasm for SoftBank may also be capped by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.
Qualcomm 's new AI data center chip deal with Meta is ultimately positive for Arm through royalty payments, Jackson added. However, Arm also faces growing competition as Qualcomm expands more aggressively into the central processing unit market.