On Wednesday, November 5, there was a significant decline in Asian stock markets, with Japanese stocks facing heavy pressure. SoftBank Group Corporation’s shares fell by approximately 15%. This drop followed a massive sell-off in the AI (Artificial Intelligence) sector in the U.S. markets, which directly impacted SoftBank, as it has substantial investments in many AI companies.
Semiconductor and Tech Companies Also See Decline
Along with SoftBank, shares of semiconductor testing equipment manufacturer Advantest dropped by 8%, while Renesas Electronics, a chip maker, saw its shares fall by 6%.
In South Korea, major companies like Samsung Electronics and SK Hynix also experienced a 6% decline. However, both of these companies have had a remarkable performance this year, with Samsung Electronics’ shares rising 80%, and SK Hynix’s shares increasing by 210%.
TAIWAN and China Also Face Selling Pressure
Shares of Taiwan’s leading chip company TSMC (Taiwan Semiconductor Manufacturing Company) fell by up to 3% during trading on Wednesday. In China, tech giants like Alibaba and Tencent also faced downward pressure, with Alibaba’s shares dropping by 3% and Tencent’s shares falling by 2%.
U.S. Market: Palantir and Nvidia Shares Decline
On Tuesday, shares of Palantir Technologies in the U.S. fell by over 8%, even though the company’s recent quarterly results exceeded expectations. Analysts believe Palantir’s valuation is too high, and it is currently considered the “most expensive stock” in the S&P 500 index based on its one-year forward price-earnings ratio. In 2025, Palantir’s share price has already increased by 175%.
Prominent U.S. investor Louis Navellier commented, “There is a fear of a correction in the AI sector. If that happens, it will affect the entire stock market since AI companies hold a heavy weight in the index.”
Michael Burry’s Big Move
Michael Burry, the renowned investor who predicted the 2008 financial crisis, has announced that he has taken a “short position” against Palantir and Nvidia. Following this news, Nvidia’s shares fell by 4%, and AMD (Advanced Micro Devices) shares dropped by 5%.
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