SoftBank Group staged a dramatic comeback, with its shares soaring over 13% to a historic high of 14,205 yen after reporting a staggering quarterly net profit of 421.8 billion yen ($2.87 billion). This marked a sharp reversal from last year’s losses, driven by investor enthusiasm for the company’s aggressive artificial intelligence (AI) investments. The tech conglomerate has poured $30 billion into OpenAI, creator of ChatGPT, and is leading financing for the $500 billion Stargate data center project in the U.S. These bets are already paying off, with portfolio valuations rising and the debt-to-asset ratio improving to 17%.
Market Momentum and Valuation Shift
SoftBank’s rally propelled Japan’s Topix index past 3,000 points for the first time, as active investors flocked to the stock to outperform the broader market. Analysts noted the long-overdue correction of SoftBank’s valuation discount—previously over 50% below its asset value—as AI optimism reshaped perceptions. The combined effect of strong earnings and index momentum created a perfect storm for bullish sentiment, cementing SoftBank’s position as a key market driver.
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