SoftBank Group shares tumbled on Tuesday, hitting a 2 1/2-month low on worries that the latest Gemini artificial intelligence model from Alphabet may intensify competition for OpenAI — the Japanese conglomerate’s key investment.
The stock sank as much 11% on Tuesday, following a 10.9% dive in the previous session before Japan’s long weekend. The sharp back-to-back declines stand out even for SoftBank Group, whose shares are highly volatile.
“The stocks are hit by concerns that the competition environment of Open AI will become tougher after Google’s Gemini 3 received strong reviews,” said Tsutomu Yamada, market analyst at Mitsubishi UFJ eSmart Securities Co.
SoftBank Group, which briefly became Japan’s second company after Toyota Motors to reach a ¥40-trillion ($255 billion) market capitalization less than a month ago, has since lost more than 40% of its value.
The slump came even as many other AI-related Japanese stocks such as chip testing equipment maker Advantest Corp rose, tracking gains in global chip stocks which had soared during Japan’s long weekend.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
