SoftBank shares surge as Japan tech stock-fueled rally lifts Nikkei to record high
CANADA – 2025/08/07: In this photo illustration, the SoftBank Group (Soft Bank) logo is displayed on a smartphone screen. (Photo Illustration: Thomas Fuller/SOPA Images/LightRocket via Getty Images)
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Shares of the Japanese technology-focused investment giant SoftBank Group Japan rose 16.5% on Thursday amid a broader tech-fueled rally. Nikkei 225 will reach record levels.
Japanese markets have reopened after a long holiday, sending Japanese tech names soaring as investors rush to capture the global AI-fueled rally.
SoftBank on track for best day since 2020, chip testing equipment maker if gains hold up cutting edge semiconductor equipment supplier increased by approximately 7.8% Tokyo Electron increased by 9.2%. Chip solutions provider Renesas Electronics increased by 13.8%.
SoftBank shares since the beginning of the year
The rise comes after Wall Street’s tech-heavy Nasdaq Composite hit a new record overnight as US AI-related stocks rose. Chipmaker Advanced Micro Devices Inc. 18.6%, Arm Holdings 13% and server maker Super Micro Computer Inc. increased by 24.5%.
“Japan was closed on the back end of Gold Week while global risk assets were falling sharply, so today’s move is the Nikkei pricing in three sessions,” said Billy Leung, chief investment strategist at Global X ETFs.
“SPX broke a new record and Nasdaq reached an all-time high with Tokyo closed, led by semis and AI names,” Leung said, adding that Advantest and Tokyo Electron were “the most liquid Japanese expressions of the AI semis trade.”
He added that reduced geopolitical concerns also helped sentiment, with oil prices falling on signs of easing tensions between the US and Iran.
SoftBank’s gains were boosted by its close ties to Arm and AI firm OpenAI. “SoftBank is effectively the listed proxy for OpenAI and Arm,” Leung said.
The move also reflects investors’ growing optimism about AI inference and demand for data center infrastructure tied to AI systems.
Rolf Bulk, head of semiconductors and infrastructure at Futurum Group, said the rally reflected growing optimism about the long-term demand outlook for AI infrastructure.
“I think this is an ongoing rally in part as a reaction to yesterday’s strong stock performance around AI in the US, as well as AMD’s quarterly report, which included a strong read for Arm,” Bulk said.
“CPUs are important for AI inference workloads; for example, they manage agent sandboxes, orchestration servers, database, and API layers. With the increasing demand for inference and agent AI, data center CPUs have become one of the key bottlenecks in building AI infrastructure.”
Bulk noted AMD’s recent forecast that the total addressable market for data center CPUs will reach $120 billion by 2030 and could grow more than 35% annually.
