SoftBank Shares Retreat as Chip Sector Concerns Cool Rally

The recent surge in SoftBank Group Corp.'s stock proved short-lived. A disappointing forecast from a major U.S. technology firm triggered a sharp reversal on Friday, casting a shadow over the Japanese investment conglomerate's earlier gains and reigniting concerns about near-term hardware demand.

The catalyst for the sell-off originated with U.S. chipmaker Intel. The company issued a revenue forecast for the current quarter ranging between $11.7 billion and $12.7 billion, a figure that fell well short of market expectations. As Intel's stock plummeted by double digits in after-hours U.S. trading, investors across Asia interpreted the news as a cautionary signal. The core anxiety is that hardware sector demand may be weaker than previously projected.

This sentiment directly impacted SoftBank, with its shares closing down more than 4% at approximately 4,150 yen. The timing of this pullback is particularly notable, as it immediately followed a period of significant optimism. Just the day before, the stock had soared over 11%, fueled by bullish commentary from Nvidia CEO Jensen Huang. This extreme volatility underscores the equity's profile as a leveraged bet on the artificial intelligence industry, carrying substantial potential for movement in both directions.

Should investors sell immediately? Or is it worth buying SoftBank?

Maintaining an Aggressive Posture

Despite the daily market fluctuations, SoftBank's founder and CEO Masayoshi Son remains committed to a bold expansion strategy centered squarely on AI infrastructure. Key elements of this approach include:
* OpenAI Stake: The group has recently increased its holding in the creator of ChatGPT to roughly 11%.
* Infrastructure Push: Through the planned acquisition of DigitalBridge Group, SoftBank is targeting direct access to data centers and power supply assets.

Fundamental Focus Turns to Upcoming Results

Market participants are now looking ahead to the company's next quarterly earnings report, scheduled for February 12, 2026. Analysts anticipate this disclosure will provide concrete details regarding the valuation of the Vision Funds and newer portfolio holdings. Even with the current setback, the medium-term market outlook remains positive. The average analyst price target of 5,527 yen implies a theoretical upside of over 30%, contingent on the fundamental growth narrative for the AI sector remaining intact.