SoftBank soars as Nvidia earnings signal strong AI momentum

Source Domain: www.cnbc.com

SoftBank Group shares surged by 19.8% on Thursday, adding about $35 billion to its market cap, as positive earnings from Nvidia signaled strong growth in the artificial intelligence sector.
The company’s significant gains are closely linked to its investments in AI technologies, particularly through its stake in Arm Holdings and extensive investments in OpenAI, which totaled over $30 billion.
SoftBank’s Vision Fund posted a $46 billion annual gain, largely driven by the soaring valuation of its investment in OpenAI, which resulted in gains of about $45 billion in the fiscal year ended March.
Analysts have maintained a “buy” recommendation on SoftBank’s investments due to improved financial performance and strengthened balance sheet strength, particularly through its AI-related assets.
There is renewed optimism about the potential listing of OpenAI, driving up not only SoftBank’s stock but also shares of Arm Holdings, which saw over a 15% increase in U.S. trading hours.
Other semiconductor stocks tied to Nvidia’s supply chain also saw gains, including TSMC, Renesas Electronics, Tokyo Electron, SK Hynix, and Samsung Electronics, reflecting broader tech sector optimism.

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