Japanese tech stocks tumbled on Friday as SoftBank dropped 8.8%, Tokyo Electron lost 9%, and Advantest slid 9.4%, tracking steep overnight losses on Wall Street. The declines followed another weak session for US technology stocks, with the Nasdaq Composite falling 1.47% as semiconductor shares came under renewed pressure. The sell-off underscored growing worries about AI spending, with investors questioning whether lofty valuations can be sustained as infrastructure investment continues to accelerate.
SoftBank and Japanese Chip Stocks Record Sharp Friday Declines
Shares of SoftBank dropped 8.8% on Friday, while chip equipment maker Tokyo Electron lost 9% and Advantest slid 9.4%. The declines tracked steep overnight losses on Wall Street. South Korea's markets were closed for a public holiday. On Thursday, shares of SK Hynix closed over 11% lower.
Kioxia Ordered to Pay $229 Million in Patent Infringement Case
Japanese memory chipmaker Kioxia plunged over 14% after a federal jury in Texas on Thursday ordered the firm to pay $229 million in damages after finding it infringed a Viasat patent related to computer memory technology.
US Semiconductor Stocks Extend Losses Amid AI Spending Concerns
The declines followed another weak session for US technology stocks. The VanEck Semiconductor ETF fell almost 4%, with Arm Holdings dropping more than 5%. Micron Technology, Advanced Micro Devices and Broadcom each lost more than 5%, while US-listed shares of SK Hynix slumped over 13%.
TSMC Raises Capital Expenditure Forecast to $60-64 Billion
TSMC raised its full-year capital expenditure forecast to between $60 billion and $64 billion, up from $52 billion to $56 billion. Investors focused on concerns that the industry's aggressive investment cycle might be becoming increasingly difficult to justify.
Andrew Jackson, strategist at Ortus Advisors, said the sell-off reflected an unwinding of crowded AI momentum trades rather than a deterioration in the sector's long-term fundamentals. "Another wipe out for U.S. tech and AI with recent momentum winners taking another leg lower after TSMC's earnings yesterday in Asia were not seen as strong enough to justify further upside for the sector and raising concerns over excessive spending," Jackson said.
FAQ
What caused SoftBank stocks to drop on Friday?
SoftBank stocks dropped 8.8% on Friday as Japanese tech stocks tracked steep overnight losses on Wall Street, where semiconductor shares came under renewed pressure. The Nasdaq Composite fell 1.47%, with the VanEck Semiconductor ETF falling almost 4%.
Why did Kioxia stocks plunge over 14%?
Kioxia stocks plunged over 14% after a federal jury in Texas on Thursday ordered the firm to pay $229 million in damages after finding it infringed a Viasat patent related to computer memory technology.
How much did TSMC raise its capital expenditure forecast?
TSMC raised its full-year capital expenditure forecast to between $60 billion and $64 billion, up from $52 billion to $56 billion.
