SoftBank's Q1 Profit Surges on NVIDIA and Coupang Gains

SoftBank Group reported a net profit of 421.82 billion yen ($2.9 billion) for Q1, exceeding analysts' expectations. The profit was driven by gains from NVIDIA and Coupang holdings. SoftBank is doubling down on AI investments, increasing its stakes in NVIDIA and TSMC while divesting less relevant assets. The company is also optimistic about its $500 billion Stargate data center project despite potential U.S. trade tensions.

SoftBank Group Corp. reported a net profit of 421.82 billion yen ($2.9 billion) for the first quarter of 2025, surpassing analysts' expectations. The Tokyo-based technology investment company attributed its earnings to gains from its stakes in Nvidia and Coupang, as well as a recovery in its tech funds business [1].

The company's earnings were bolstered by an investment gain of 209.7 billion yen ($1.42 billion) on its Nvidia shares, reflecting the AI accelerator maker's 46% rally during the quarter [2]. Additionally, the Vision Fund logged a profit of 451.39 billion yen ($3.1 billion), compared to a 204.30 billion yen ($1.4 billion) loss a year earlier, driven by a recovery in tech valuations and gains on holdings such as Coupang Inc., Auto1 Group SE, Symbotic Inc., and Swiggy Ltd. [1].

SoftBank has been doubling down on its AI investments, increasing its stakes in Nvidia and TSMC while divesting less relevant assets. The company's chief financial officer, Yoshimitsu Goto, stated that SoftBank plans to invest an additional 22.5 billion yen ($164 million) by the end of the year to complete its remaining 30 billion yen ($216 million) investment in OpenAI [1].

The company's Vision Funds business also booked a profit of 451.39 billion yen ($3.1 billion), compared to a 204.30 billion yen ($1.4 billion) loss a year earlier. This improvement was driven by a recovery in tech valuations and gains on holdings such as Coupang Inc., Auto1 Group SE, Symbotic Inc., and Swiggy Ltd. [1].

SoftBank's earnings were also boosted by paper gains on its recent purchases of stock in Nvidia and Taiwan Semiconductor Manufacturing Co. The Japanese company increased its stake in Nvidia to more than $3 billion as of end-March, helping the Japanese investor benefit from the AI accelerator maker's 46% rally during the three months through June [2].

Despite potential U.S. trade tensions, SoftBank remains optimistic about its $500 billion Stargate data center project. The company is partnering with TSMC, OpenAI, and Oracle on a $1.5 trillion AI infrastructure plan, including Arizona chip manufacturing and Stargate data centers [3].

References:
[1] https://www.marketscreener.com/news/softbank-group-posts-quarterly-profit-as-ai-bet-pays-off-update-ce7c5edfdc8ef625
[2] https://finance.yahoo.com/news/softbank-swings-profit-nvidia-bet-063613840.html
[3] https://www.ainvest.com/news/softbank-triples-nvidia-stake-3b-boosts-tsmc-holdings-ai-push-2508/