During the first few months of 2025, global tech companies faced pressure from U.S. President Trump's trade tariffs. However, since October, concerns about an artificial intelligence (AI) bubble have become the main focus, and investors have grown more cautious about the high valuations of AI companies.

Southern Group, a Japanese tech giant deeply invested in AI companies, saw its stock drop 40% from October 31 to November 26, with a loss of nearly $50 billion in market value. This financial turbulence was not caused by a single event but rather by multiple factors. For example, Palantir Technologies, despite strong third-quarter performance, saw its stock price fall, raising investor concerns about its valuation.

The market's reaction marks a fundamental shift in investor behavior. Strong past performance is no longer sufficient to support high valuations based on future AI potential. According to the Bank of America Global Fund Manager Survey, 54% of respondents believe AI-related assets are in a bubble, and 60% say global stocks are overvalued.

Southern Group's investment portfolio includes AI companies such as Arm, OpenAI, Perplexity, Databricks, and ByteDance, making it more vulnerable to AI-related concerns. After Palantir's stock fell, Southern Group released its quarterly results on November 5 and announced the sale of its entire stake in NVIDIA on November 11 to invest deeply in OpenAI, further intensifying market panic.

Experts say that Southern Group's strategic adjustments have raised doubts among some investors, with many questioning whether Southern Group can find successful investment opportunities in the AI boom. At the same time, the global semiconductor market has also been affected by Southern Group's stock decline, with shares of major tech companies, including NVIDIA, TSMC, and Alibaba, all falling.

In a competitive environment, Google's newly launched Gemini 3 has attracted widespread attention, with many investors worrying about whether OpenAI can maintain its market leadership. In the future, as AI technology continues to evolve, investors expect Southern Group to adjust its risk strategy to cope with market changes.

Key Points:

- 📉 Southern Group's stock dropped 40% in just a few weeks, losing $50 billion in market value.

- 🔍 54% of investors believe AI assets are in a bubble, and confidence in high AI valuations has weakened.

- ⚙️ The release of Google's new AI product Gemini 3 has made investors concerned about OpenAI's competitive position.