Shares in Japan's SoftBank Group plunged more than 14% Wednesday amid a broader drop in Asian AI-linked companies, tracking declines in U.S. peers, as investors turned wary of stretched valuations in the market's most crowded trade.

SoftBank, which has built a broad portfolio of AI-related investments spanning infrastructure, chips, and application firms, lost about $32 billion in market cap. If losses hold, the group's shares will clock their worst day since last August when they tanked over 18%, data from LSEG showed.

SoftBank has a controlling stake in U.K-based Arm Holdings, whose chip designs power mobile and AI processors, and acquired Ampere Computing this year to strengthen its AI data-center capabilities. Nasdaq-listed Arm Holdings saw shares drop 4.71% overnight.

The group h

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