SoftBank soars over 16% as Nvidia earnings signal strong AI momentum
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 SoftBank Group Nvidia’s blockbuster overnight earnings jumped Thursday as it signaled strong momentum in the artificial intelligence space.
SoftBank Group, whose shares are up more than 16 percent after five consecutive sessions of losses, is closely linked to the AI boom thanks to its stake in Arm Holdings, whose chip designs are used in AI servers and data centers powered by Nvidia systems. It also benefited from its investment in OpenAI.
The Japanese giant invested more than $30 billion in OpenAI, and investment gains in the company totaled $45 billion in the year ending March.
Andrew Jackson, head of Japanese equity strategy at Ortus Advisors, said SoftBank’s sharp rise was also driven by renewed optimism about a potential OpenAI listing, which helped push Arm Holdings shares higher.
While the developments have been widely anticipated by markets, Jackson told CNBC that the size of the move is still significant given SoftBank’s heavy exposure to AI-related assets. Arm Holdings last closed up over 15% during US trading hours.
Analysts at Fitch Ratings unit CreditSights last week reiterated an “outperform” recommendation on SoftBank Group debt, adding that the sharp rise in Arm Holdings shares had materially strengthened the conglomerate’s balance sheet despite aggressive investments in artificial intelligence.
Nvidia reports another blockbuster quarter overnight; Its revenue increased 85% to $81.62 billion, from $44.06 billion the previous year. The tech giant also announced an $80 billion share buyback program and increased its dividend.
