SoftBank Shares Plunge 10% Amid Global Tech Valuation Correction, Son's Net Worth Drops $13 Billion

This analysis is based on the Forbes report [1] published on November 5, 2025, which detailed SoftBank’s significant share price decline and its impact on Masayoshi Son’s net worth amid a global technology valuation correction.

The market event on November 5, 2025, represents a significant correction in AI-related technology valuations, with SoftBank Group serving as a focal point due to its concentrated exposure to artificial intelligence investments. The company’s shares plummeted 10% to ¥22,640, with trading volume surging nearly 90% above average levels to 34.13 million shares [0]. This decline occurred within a broader global market selloff, where the S&P 500 fell 1.1%, Nasdaq dropped 2%, and Asian markets saw substantial declines with Japan’s Nikkei 225 falling 2.5% and South Korea’s KOSPI dropping 2.9% [1,2].

SoftBank’s vulnerability stems from its strategic positioning as what analysts describe as “the highest-beta expression of Asia’s AI trade” [1]. The company has made substantial commitments to AI technology, including up to $40 billion to OpenAI (with $10 billion completed by April 2025 and $30 billion planned for December 2025) and the $5.4 billion acquisition of ABB’s robotics unit in October 2025 [1,4]. This concentration creates significant correlation risk, as evidenced by the synchronized decline of major AI stocks including NVIDIA (-3.96%) and disappointing forecasts from AMD and Super Micro Computer [0,1].

: SoftBank’s Vision Fund manages $166 billion across 332 companies, with 69 portfolio exits and 129 unicorns [4]. However, the market’s perception of SoftBank as a proxy for OpenAI investment has created heightened sensitivity to AI valuation concerns. The company’s Net Asset Value (NAV) of approximately ¥31 trillion stands in stark contrast to its market cap of ¥14 trillion, suggesting either significant undervaluation or market skepticism about asset quality [4].

: The selloff has exposed underlying financial concerns, with SoftBank’s current ratio at 0.84 and quick ratio at 0.82, indicating potential short-term liquidity challenges [0]. These metrics suggest the company may face difficulties meeting immediate obligations if market conditions deteriorate further.

: Analysts suggest the current adjustment may follow patterns similar to early-mid 2024, potentially requiring approximately three months for the market to adjust to a “new reality” and eliminate “market overheat” conditions [1]. This historical context provides a framework for understanding the potential duration and severity of the current correction.

: The technology sector declined 0.49% overall, but SoftBank’s outsized decline reflects its high-beta nature and market perception as leveraged to the tech cycle and particularly OpenAI [1]. This sentiment-driven volatility creates opportunities and risks depending on investment time horizons.

1. Valuation Bubble Risk
   : The current selloff reflects legitimate concerns that AI-related companies cannot sustain investors’ high growth expectations [1]. With SoftBank trading at a P/E ratio of 31.24x [0], further corrections may occur if AI companies fail to deliver projected growth.

2. Concentration Risk
   : SoftBank’s heavy exposure to AI and OpenAI creates significant correlation risk. As noted by analysts, the company is “levered to tech cycle and in particular OpenAI” [1], making it vulnerable to sector-specific downturns.

3. Liquidity Concerns
   : Current ratio of 0.84 and quick ratio of 0.82 indicate potential short-term liquidity challenges [0]. These metrics could constrain the company’s ability to weather extended market volatility or execute planned investments.

4. Market Sentiment Volatility
   : As the “highest-beta expression of Asia’s AI trade,” SoftBank is extremely sensitive to market sentiment shifts [1]. This creates potential for rapid, large-scale price movements in both directions.

: Despite short-term volatility, AI transformation remains in early stages with massive long-term potential. SoftBank’s strategic investments in AI and robotics could yield significant returns if the technology delivers on its transformative promise.

: The divergence between NAV (¥31 trillion) and market cap (¥14 trillion) [4] may represent opportunities for investors who believe in the long-term value of SoftBank’s portfolio and AI strategy.

: Historical patterns suggest market corrections of this nature typically resolve within approximately three months [1]. This timeframe may provide strategic entry points for investors with appropriate risk tolerance.

The November 5, 2025 market event represents a significant correction in AI technology valuations, with SoftBank Group experiencing a 10% share price decline and CEO Masayoshi Son suffering a $13.1 billion net worth reduction - the largest single-day decline among Asian billionaires [1]. The company’s high-beta nature and concentrated AI exposure make it particularly vulnerable to market sentiment shifts, while underlying liquidity metrics (current ratio: 0.84, quick ratio: 0.82) [0] suggest financial flexibility constraints.

Global markets experienced synchronized declines, with technology stocks leading the retreat. The selloff reflects broader concerns about lofty valuations in AI-related companies, despite the sector’s strong year-to-date performance (SoftBank remains up ~150% YTD) [1]. Analysts suggest the market may need approximately three months to adjust to new valuation realities [1].

SoftBank’s strategic positioning includes substantial commitments to AI companies, particularly up to $40 billion to OpenAI and major acquisitions in robotics [1,4]. While this creates concentration risk, it also positions the company for potential long-term benefits from AI technology adoption and commercialization.

: Decision-makers should track Q4 earnings from major AI companies, Federal Reserve policy decisions, progress on SoftBank’s remaining $30 billion OpenAI investment, Vision Fund portfolio performance, and AI regulatory developments [1]. Extended market downturns beyond the anticipated three-month adjustment period would warrant reevaluation of the investment thesis.