EL7.AI
StocksMedium•4 November 2026•
1 min read

SoftBank Faces Pressure as Arm Slides Amid US AI Sector Rotation

Key Facts

1Arm shares fell 5% in regular trading and slid further after hours despite beating Q2 earnings and revenue estimates.
2AI infrastructure stocks including Nvidia and Micron fell on concerns that tighter US regulations could slow data center expansion.
3SoftBank Group holds approximately 90% of Arm, leaving the price-weighted Nikkei index exposed to AI and chip sector selloffs.

Arm shares fell 5% in regular trading and continued to slide after hours despite the company beating Q2 earnings and revenue estimates. According to investinglive.com, AI infrastructure stocks including Nvidia and Micron also declined on concerns that tighter US regulations could slow the expansion of data centers.

SoftBank Group holds approximately 90% of Arm, leaving its stock and the Nikkei index exposed to volatility in the semiconductor sector. SFTBY closed at $13.42 on November 3, 2026, while NVDA closed at $202.78 and MU closed at $805.98 on November 4, 2026. In the broader sector, TSM closed at $395.96 on the same date.

The market is awaiting the release of US Initial Jobless Claims on November 5, 2026. Investors are also monitoring scheduled speeches from Federal Reserve officials, including Hammack and Barkin on November 5, followed by Logan, Williams, Musalem, and Bowman on November 6, 2026.

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