SoftBank shares plunge more than 10% at one point; U.S. data center project writedown drags second fiscal quarter into a loss.

SoftBank Group recorded a net loss for the first time in nearly two years amid growing market concerns about the sustainability of AI growth, as it booked a $3.7 billion impairment provision on a U.S. data center project. SoftBank reported a loss of 1.12 trillion yen in its second fiscal quarter, mainly related to non-refundable advance payments made to secure equipment and capacity for a data center campus in Ohio. Analysts had on average expected the company to post a profit of 129 billion yen. In early trading in Tokyo on Wednesday, SoftBank shares fell more than 10% at one point. Shares of power and equipment companies including GE Vernova Inc. and Bloom Energy fell overnight. Weakness in chipmaker Arm Holdings Plc, Intel, and South Korean e-commerce giant Coupang Inc. also further weighed on SoftBank's performance. The Vision Fund, which manages equity stakes in hundreds of technology startups, posted a loss of 81.6 billion yen for the quarter, while the market had also expected a profit.