AI concerns hit tech stocks, SoftBank posts first net loss in nearly two years.
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SoftBank posts its first net loss in nearly two years. Concerns over spending and demand in the AI sector have weighed on the core holdings of the tech investment giant. The Japanese conglomerate recorded a net loss of 1.12 trillion yen ($7.1 billion) in its second fiscal quarter, a sharp reversal from the profit it posted in the same period last year. Declines in shares of chipmakers Arm and Intel, as well as South Korean e-commerce giant Coupang, dragged down SoftBank’s overall performance. The Vision Fund division, which manages stakes in hundreds of tech startups, posted a loss of 81.6 billion yen. SoftBank is increasingly viewed as a barometer for sentiment toward OpenAI and the broader AI sector. Since hitting an all-time high in June, SoftBank’s stock has plummeted more than 50%. The slump is driven both by market worries over its debt used to finance large-scale AI investments and fears that a full Democratic victory in the U.S. midterm elections could stall many projects under Masayoshi Son’s purview. (Jinshi)
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