(MENAFN) Japanese technology conglomerate SoftBank experienced a 6.6% drop in its shares on Friday, following the company's decision to sell all of its holdings in the US semiconductor leader Nvidia for $5.83 billion, a move announced on Tuesday. Concerns over the high valuation of technology stocks also contributed to the decline.
SoftBank’s stock closed at 19,780 Japanese yen ($127.9) on Friday, marking a third consecutive day of losses. Since the announcement of the Nvidia stake sale, the company’s shares have fallen roughly 15%.

The previous week, SoftBank endured its largest weekly decline since March 2020, shedding nearly $50 billion in market value.

According to the firm’s latest earnings report, SoftBank disclosed that it reduced its T-Mobile stake and sold 32.1 million Nvidia shares in October, generating $9.17 billion in proceeds.

Despite the sale, SoftBank and Nvidia continue to maintain a business partnership. The Tokyo-based company remains involved in multiple AI initiatives utilizing Nvidia’s technology, including the $500 billion "Stargate project" for data centers in the United States.

Other technology stocks in the region also experienced downturns. Advantest, a producer of semiconductor testing devices, and Tokyo Electron, a manufacturer of chip fabrication equipment, saw drops exceeding 3% and 4%, respectively.

Globally, the largest contract chipmaker, Taiwan’s TSMC, recorded a 2.04% decrease. Samsung Electronics fell 3.8%, while South Korean memory chip leader SK Hynix declined by more than 5%.

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