CANADA – 2025/08/07: In this photo illustration, the SoftBank Group (Soft Bank) logo can be seen displayed on a smartphone screen. (Image credit by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
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Shares of SoftBank Group increased on Thursday as a blockbuster benefit from Nvidia Overnight it has shown strong momentum in the field of artificial intelligence.
Shares of SoftBank Group, which have fallen five straight times, rose 19.8% to add about $35 billion to the market on Thursday.
The company’s fortunes are closely tied to the AI boom through its stake in Arm Holdings, its chip design used in AI servers and data centers powered by Nvidia’s systems, and its investment in OpenAI.
The Japanese giant has invested more than $30 billion in OpenAI, and its investment returns in the company totaled $45 billion in the year that ended in March.
SoftBank’s sharp rally was driven by renewed optimism about a potential OpenAI listing, which helped boost Arm Holdings shares, said Andrew Jackson, head of Japan equity strategy at Ortus Advisors.
Softbank Group shares since the start of the year
While the development was widely expected by markets, Jackson told CNBC that the size of the move still matters if SoftBank gets heavy exposure to AI-related assets. Arm Holdings closed more than 15% higher in US trading hours.
SoftBank Group last week posted an annual profit of $46 billion for its Vision Fund, driven largely by a surge in OpenAI’s value as founder Masayoshi Son doubled down on the intelligence investment. SoftBank added that profits linked to OpenAI generated about $45 billion in the fiscal year that ended in March.
Analysts at Fitch Ratings unit CreditSights last week reiterated an “outperform” rating on SoftBank Group’s debt, adding that the sharp rally in Arm Holdings’ shares has significantly strengthened the conglomerate’s balance sheet despite aggressive investments in artificial intelligence.
Shares in Asian semiconductors linked to Nvidia’s supply chain and the broader technology sector also rose on Thursday.
Taiwan stocks TSMC up more than 2%. Nvidia relies heavily on TSMC to make its advanced AI processors. Japanese Renesas ElectronicsNvidia’s main supplier, rose more than 7%.
Japanese Semiconductor Equipment maker Tokyo Electronwhich supplies key chip-making equipment to Nvidia’s chip-making foundries, jumped 5.44%.
SK Hynix, a major producer of high-bandwidth memory chips used by Nvidia, grew more than 8%. Samsung Electronics added 6.7%, also benefiting from news that the company and its South Korean union reached a wage deal, easing fears of a strike.
Shares of a Japanese semiconductor test equipment maker Advantest up 2.8%.
Nvidia reported another blockbuster quarter overnight, with revenue up 85% to $81.62 billion from $44.06 billion a year ago. The tech giant also unveiled an $80 billion share buyback plan and increased its dividend.
— CNBC’s Arjun Kharpal contributed to this report.
