SoftBank's stock has halved from its June high, with its massive AI gamble and debt pressure sparking market concerns.

According to Bloomberg, likely amid rising financing costs and investor concerns over the sustainability of large-scale artificial intelligence investments, SoftBank's stock has declined approximately 50% from its all-time high on June 2, reducing its market capitalization to around $157 billion. Just four months ago, SoftBank had briefly surpassed Toyota to become Japan's most valuable company by market cap. Additionally, growing anxiety over funding risks in the AI sector is being compounded by SoftBank's heavy reliance on debt financing to build out AI infrastructure. With its credit default swap (CDS) prices hitting a nearly four-year high this week, market concerns regarding its financial health have further intensified.