SoftBank shares tumble 13% on report OpenAI may delay IPO to 2027

Key Facts

1SoftBank shares fell 13% following a report that OpenAI is considering delaying its initial public offering until 2027.

In a move highlighting the sensitivity of AI stocks to news from portfolio companies, SoftBank shares plunged 13% according to reports from Seeking Alpha that OpenAI is considering delaying its IPO until 2027. The sharp decline reflects investor concern over SoftBank's significant exposure to OpenAI through its AI investments, with the startup being a key bet for the Japanese conglomerate.

SoftBank stock on the Tokyo Stock Exchange (9984.T) showed high volatility, closing at 6,157 yen with a trading range between 6,114 and 6,489 yen, while its US-listed ADRs (SFTBY) closed at $20.88 (June 25 close) within a range of $20.32-$21.96. The sell-off comes amid a macro environment of rising interest rates and diminished risk appetite for technology plays, adding pressure on stocks tied to venture investments.

Investors will focus on any official statements from SoftBank management regarding its OpenAI stake, as well as upcoming quarterly earnings reports expected later this year. Markets will also watch for potential regulatory developments in the AI sector that could affect valuations of startups like OpenAI. At recent close levels, the stock remains under selling pressure, testing the lower end of its trading range.