Shares of SoftBank Group plunged as much as 9.17% Wednesday, as technology stocks in Asia declined, tracking losses in U.S. peers overnight.

The Japanese tech-focused investment firm saw shares drop for a second consecutive session, following its announcement of a $2 billion investment in Intel. Intel shares rose 6.97% to close at $25.31 Tuesday stateside.

Other Japanese tech stocks also declined, with semiconductor giant Advantest falling as much as 6.27%. Meanwhile, shares in Renesas Electronics and Tokyo Electron were last seen trading 2.46% and 0.75% lower, respectively.

Technology companies in South Korea, Taiwan and Hong Kong, also fell after U.S. tech stocks dropped overnight spurred by declines in artificial intelligence darling Nvidia‘s shares.

U.S. Commerce Secretary Howard Lutnick is considering the federal government taking equity stakes in semiconductor companies that get funding under the CHIPS Act for building plants in the U.S, sources familiar with the matter told Reuters. The U.S. CHIPS and Science Act seeks to boost the country’s semiconductor industry, scientific research and innovation.

Shares of Taiwanese chip company TSMC and manufacturer Hon Hai Precision Industry — known globally as Foxconn — declined 1.69% and 2.16%, respectively. TSMC manufactures Nvidia’s high-performance graphics processing units that help power large language models, while Foxconn has a strategic partnership with Nvidia to build “AI factories.” 

Meanwhile, South Korean tech stocks mostly fell with shares of chipmaker SK Hynix down 3.33%. Samsung Electronics, however, rose 0.75%.

TSMC, Samsung and SK Hynix are among companies that have received funding under the CHIPS Act.

Over in Hong Kong, the Hang Seng Tech index lost 0.87% in early trade.

The worst performing stocks on the index were Kuaishou Technology which declined 4.8%, JD Health International which dropped 3.31% and Horizon Robotics which lost 2.29%.

Losses were also seen tech majors Alibaba Group, down 1.44%, and Xiaomi Corp which lost 1.34%.

Palantir‘s stock slumped more than 9% on Tuesday, falling for a fifth straight day to continue its pullback from all-time highs.

The artificial intelligence software provider’s stock has slid more than 15% over the last five trading sessions, after a stellar earnings report earlier this month propelled shares to all-time highs. The report was Palantir’s first-ever $1 billion revenue quarter.

Tuesday’s dip coincided with a broader market pullback.

Palantir is the most significant gainer to date in the S&P 500 in 2025, up more than 100%.

Shares have more than doubled as the company benefits from ongoing AI enthusiasm, scooping up government contracts with President Donald Trump pushing to overhaul agencies.

Palantir’s ascent has pushed the company into a list of top 10 U.S. tech firms and 20 most valuable U.S. companies, while also making shares incredibly expensive to own. Its forward price-to-earnings ratio, which tracks future earnings relative to share price, has soared past 245 times.

By comparison, technology giants such as Microsoft and Apple carry a P/E of nearly 30 times and rake in significantly greater quarterly revenues. Meta‘s and Alphabet‘s P/E ratios hover in the 20s.

Crypto stocks suffered on Tuesday as investors fled tech stocks and riskier corners of the market.

Among crypto exchanges, Coinbase and eToro fell more than 5% each, while Robinhood and Bullish both dropped more than 6%. Crypto financial services firm Galaxy Digital dropped 11%. In the burgeoning sector of crypto treasury firms, Strategy lost 7%, SharpLink Gaming slid 8%, Bitmine Immersion slumped 12% and DeFi Development tumbled 15%. Stablecoin issuer Circle lost 5%.

Meanwhile, the price of bitcoin pulled back nearly 3% to just over $113,000. Ether was down more than 4% to the $4,100 level, according to Coin Metrics.

Investors appeared to rotate out of tech names on Tuesday. The sector had seen a boost last week as traders weighed the prospect of more interest rate cuts. Also, bitcoin touched an intraday all-time high near $125,000 last week.

On Tuesday, the Nasdaq Composite was down more than 1%, weighed down by declines in Nvidia and other tech heavyweights.

The crypto market tends to be vulnerable to moves in tech stocks due to their growth-oriented investor base, narrative-driven price action, speculative nature and tendency to thrive in low-interest rate environments.

This week, investors are watching the Federal Reserve’s annual economic symposium in Jackson Hole, Wyo. for clues around what could happen at the central bank’s remaining policy meetings this year. If Fed Chair Jerome Powell signals more dovish policy could be ahead, crypto may bounce.

“With Powell speaking at Jackson Hole, we typically see profit-taking ahead of his remarks,” said Satraj Bambra, CEO of hybrid exchange Rails. “Any time there’s communication uncertainty from the Fed, you can generally expect some profit-taking as traders de-risk their positions.”

Crypto stocks have had a solid run in recent months — thanks to the addition of Coinbase in the benchmark S&P 500 index, the successful IPO of Circle and the GENIUS Act stablecoin framework becoming law. However, investors expect a pullback in August and through the September Fed meeting, where they hope to see central bank policymakers implement rate cuts.