SoftBank Leads Decline in Japanese Tech Stocks Amid AI Spending Concerns

Japanese tech stocks experienced a significant decline on February 3, 2025, led by SoftBank Group Corp, which fell as much as 7.25% before paring losses to close 3% lower. This downturn reflected broader concerns over artificial intelligence spending, as fears from the U.S. markets spilled over into Asia.

The Nikkei 225 index was down 1.23%, with SoftBank's volatility in focus following a turbulent month. The tech-heavy Nasdaq Composite had dropped 1.81% the previous day, influenced by losses in major companies such as Oracle, Broadcom, and Nvidia.

Oracle's decline was particularly notable after the Financial Times reported that Blue Owl Capital's plans to finance a $10 billion data center in Michigan had stalled. This news came after Oracle had previously refuted claims of delaying projects for AI leader OpenAI until 2028.

SoftBank had announced plans to invest $500 billion in AI infrastructure in the U.S. alongside partners like OpenAI and Oracle, and had introduced five new U.S. AI data center sites under the Stargate initiative in September 2024.

These developments illustrate the growing volatility and uncertainty surrounding the AI sector, significantly impacting investor sentiment in both Japanese and global tech markets.