Key facts
- Kioxia shares fell 12% on Friday.
- SoftBank Group shares fell over 12% on Friday.
- The stock declines were influenced by a report about OpenAI.
- OpenAI is reportedly considering delaying its IPO.
- The news led to a selloff in AI-related stocks.
- Investors engaged in profit-taking amid concerns over the IPO delay.
Both Japanese chipmaker Kioxia and investment firm SoftBank Group saw their shares plummet by more than 12% on Friday. The significant stock price decreases were directly linked to a report indicating that OpenAI is contemplating a delay in its planned initial public offering (IPO).
This development has cast a shadow over the broader artificial intelligence (AI) stock market, prompting a general selloff in AI-related equities. Investors appeared to be engaging in profit-taking, reacting to concerns that a postponed IPO from a major AI player like OpenAI could signal underlying issues or a shift in market conditions for the sector. The sentiment shift suggests a cautious approach from investors regarding high-growth AI companies.