SoftBank Surges on OpenAI Bets, Posts $16.6B Q2 Profit
SoftBank Surges on OpenAI Bets, Posts $16.6B Q2 Profit
SoftBank posts 2.5 trillion yen quarterly profit on OpenAI gains, buoying AI bets even as it exits Nvidia stakes and reshapes its AI-focused strategy.
SoftBank Group posted a net profit of 2.5 trillion yen for the July-September quarter, marking its third straight quarter in the black. The figure dwarfs the 1.18 trillion yen profit a year earlier, and it came as investors cheered a surge in technology shares linked to AI bets. Three analysts surveyed by LSEG had forecast a profit of around 207 billion yen for the quarter, underscoring how far the actual results outpaced expectations.
Much of SoftBank's strength came from its Vision Fund unit, which logged an investment gain of 3.5 trillion yen for the quarter. A large chunk of that gain was tied to the group’s stake in OpenAI, with the OpenAI holding accounting for about 2.16 trillion yen of the Vision Fund's quarterly gains. The data points put SoftBank at the center of the AI investment wave that has helped push its shares to record highs.
Industry watchers say the rally tracks AI infrastructure spending, data-center expansion, and rapid development by OpenAI and other frontrunners. Yet there are persistent worries about an 'AI bubble' where valuations outpace real profits.
In another move signaling a strategic pivot, SoftBank reportedly offloaded its entire Nvidia stake for about $5.83 billion. The sale aligns with founder Masayoshi Son's intensified focus on AI initiatives and SoftBank's growing exposure to companies like OpenAI and Oracle.
Analysts have upgraded SoftBank's share-price targets in light of the OpenAI wager, even as the market weighs the sustainability of the current AI-led rally. The company’s mix of venture investments, tech holdings, and potential AI infrastructure assets keeps it at the heart of discussions about the next phase of AI-driven growth.
Taken together, SoftBank's latest results reinforce its role as a bellwether of AI finance, even as risks around overzealous investment linger in the background.
Cover image source: SoftBank's OpenAI wager in focus as analysts upgrade share price target 🔗
