SoftBank sinks over 10% as Nvidia-fueled rout sweeps Asian chip names

A sector-wide pullback hit Asian chip stocks Friday, led by a steep decline in SoftBank , after Nvidia 's sharp drop overnight defied its stronger-than-expected earnings and bullish outlook.

SoftBank plunged more than 10% in Tokyo. The Japanese tech conglomerate recently offloaded its Nvidia shares but still controls British semiconductor company Arm , which supplies Nvidia with chip architecture and designs.

SoftBank is also involved in a number of AI ventures that use Nvidia's technology, including the $500 billion Stargate project for data centers in the U.S.

South Korea's SK Hynix fell nearly 10%. The memory chip maker is Nvidia's top supplier of high-bandwidth memory used in AI applications. Samsung Electronics , a rival that also supplies Nvidi