Asia tech rout: SoftBank down 12%, SK Hynix, Samsung slide

Asian technology stocks plunged on Friday after a fourth straight decline on the Nasdaq. Apple fell 6.1% after announcing price increases for iPads and MacBooks to offset rising memory and storage costs. The announcement erased about $250 billion from Apple’s market value. Investors raised questions about whether rising AI infrastructure costs are starting to squeeze customers’ margins as much as they support growth.

SoftBank was among the heaviest decliners in Asia, falling more than 12% in Tokyo. Two developments weighed on the group: Arm Holdings, majority-owned by SoftBank, underperformed several AI peers after slipping in U.S. trading, and industry reports indicate OpenAI is leaning to delay its initial public offering until 2027. Jay Ritter, professor emeritus at the University of Florida’s Warrington College of Business, described SoftBank as offering investors a “leveraged bet on OpenAI’s future.”

There was potential upside for Arm from Qualcomm’s chip partnership with Meta, which could generate licensing and royalty demand. At the same time, Andrew Jackson of Ortus Advisors raised concerns that Qualcomm’s deeper push into custom central processing units could create a competitive challenge for Arm.

The pressure in Tokyo spread to South Korea. SK Hynix plunged more than 8% and Samsung Electronics lost nearly 9%. SK Square, a holding company with significant exposure to SK Hynix, dropped around 13%. Other Korean technology firms, including LG Electronics and Seoul Semiconductor, also fell as traders reduced exposure to memory-linked and leveraged AI plays after a turbulent week.

Market participants pointed to the link between memory demand and customer costs. Micron’s strong results showed memory suppliers can generate substantial profits when demand is high. Apple’s price increases offered a direct example of how higher component costs can affect device makers and potentially consumers. Nigel Green, chief executive of the deVere Group, commented: “Micron tells us where the profits are. Apple tells us where the inflation is.”

Analysts also noted recent trading has been driven by short-term momentum. Deutsche Bank analyst Peter Milliken wrote that markets have become “fixated on short-term momentum.” Trading followed four straight Nasdaq declines and fresh evidence that rising component costs can affect corporate pricing and profit margins.