SoftBank Shares Drop 20% Amid AI Bubble Concerns
TOKYO - shares of SoftBank Group Corp. have experienced a sharp correction,falling 20% in the past week,as investors express apprehension that the Japanese conglomerate’s recent stock surge was fueled by an artificial intelligence (AI) bubble. The decline signals a potential shift in sentiment toward companies heavily invested in the AI sector.
SoftBank’s market capitalization had previously soared on the back of its meaningful investments in AI, particularly its partnership with OpenAI CEO Sam Altman in the pursuit of artificial superintelligence. The recent pullback reflects broader market anxieties about valuations in the AI space and whether current prices are lasting. This downturn impacts SoftBank’s investors and raises questions about the future trajectory of its AI-focused ventures. The company’s performance is being closely watched as a bellwether for the overall health of the AI investment landscape.
The stock’s decline comes after a period of substantial gains, prompting analysts too question whether the market had become overheated. SoftBank’s CEO,Masayoshi Son,has publicly championed AI as a transformative technology,and the company has made substantial financial commitments to the field.
As of November 11, 2025, the market is evaluating whether SoftBank’s AI investments will deliver the expected returns or if the current valuations are unsustainable.
