SoftBank Group shares extend gains, last up 5.2%

SoftBank Group shares extend gains, last up 5.2%

SoftBank Group shares have extended their recent gains, closing up 5.2% on September 2, 2025. The stock's performance has been driven by a series of strategic investments and acquisitions, particularly in the artificial intelligence (AI) sector, as well as positive earnings reports.

SoftBank's increasing focus on AI has been a key driver of its stock performance. The company's investments in AI chipmakers like Graphcore, Ampere Computing, and its stake in Nvidia, along with its USD 40 billion investment in OpenAI, have fueled optimism among investors [2]. SoftBank's AI investments are part of its broader strategy to become a leading platform provider for artificial superintelligence (ASI) [2].

The company's net asset value (NAV) jumped 26% to JPY 32.4 trillion (USD 222.8 billion) as of June, largely due to improvements in the market capitalization of its portfolio, including Arm, which accounts for half of the value of the stocks it holds [2].

In addition to its AI investments, SoftBank's recent earnings report highlighted the company's financial health. The company reported a JPY 421.8 billion (USD 2.9 billion) net profit for the three months ended in June, posting its first profit for that quarter in four years [2]. This profit was driven by gains in shares of South Korean online retailer Coupang and ride-hailing firm Grab, as well as a rise in Nvidia's stock price [2].

The recent gains in SoftBank's stock price have also been influenced by its strategic investments in the semiconductor sector. The company's USD 2 billion investment in Intel, which includes a 2% stake, reflects its belief in the growing importance of advanced semiconductor manufacturing and supply in the US [2].

Despite the positive developments, some analysts have expressed concerns about SoftBank's increasing exposure to AI and the potential risks associated with its investments. A recent report by the Massachusetts Institute of Technology revealed that while US businesses have invested between USD 35 billion to USD 40 billion in generative AI, a whopping 95% of businesses are "getting zero return" on their investments [2].

InMobi Group, a mobile advertising platform backed by SoftBank Group Corp., is also seeking a USD 350 million private loan ahead of its planned initial public offering (IPO) in India. The loan will fund the buyback of shares from SoftBank and other equity holders, as well as capital expansion, including strategic acquisitions [1, 3]. This move reflects the growing demand for private debt in India, driven by the country's infrastructure push and the expansion of new companies [3].

In conclusion, SoftBank Group's stock performance has been driven by its strategic investments in AI and semiconductors, as well as positive earnings reports. However, the company's increasing exposure to AI and the potential risks associated with its investments remain a concern for some analysts.

References:
[1] https://seekingalpha.com/news/4491501-softbank-backed-inmobi-seeks-350-million-private-loan-ahead-of-india-ipo---report
[2] https://kr-asia.com/softbank-rides-tech-rally-with-ai-investments-but-will-they-pay-off
[3] https://www.bloomberg.com/news/articles/2025-09-03/softbank-backed-inmobi-seeks-350-million-loan-for-share-buyback