SoftBank Soars 20% After Nvidia Blowout Quarter Fuels AI Optimism

CNBC reported Thursday that SoftBank Group shares surged roughly 20%, adding approximately $35 billion to the conglomerate’s market capitalization. The jump came after Nvidia posted record quarterly results overnight, reinforcing conviction around the AI infrastructure buildout.

SoftBank and Nvidia Earnings Send Markets Higher

SoftBank Group had shed ground in five consecutive sessions before Thursday’s sharp reversal. The company’s deep exposure to AI assets, including its stake in Arm Holdings and its OpenAI investment, made it a direct beneficiary of renewed market enthusiasm following Nvidia’s print.

Andrew Jackson, head of Japanese equity strategy at Ortus Advisors, told CNBC the magnitude of the move was notable given SoftBank’s concentrated AI positioning. Jackson cited growing optimism around a potential OpenAI public listing as a further catalyst. Arm Holdings shares closed more than 15% higher in U.S. trading, amplifying the gain for SoftBank investors.

SoftBank’s AI Bet and the Vision Fund Backdrop

SoftBank has committed more than $30 billion to OpenAI. The conglomerate reported last week a $46 billion annual gain at its Vision Fund, with OpenAI-linked gains accounting for roughly $45 billion in the fiscal year through March. Founder Masayoshi Son has staked the firm’s identity on the AI supercycle, and Thursday’s session validated that wager in equity-market terms.

Analysts at Fitch Ratings unit CreditSights reiterated an outperform recommendation on SoftBank debt the same week, noting that a sustained rally in Arm shares had materially improved the balance sheet despite the scale of ongoing AI investments.

Asian Semiconductor Stocks Follow Nvidia Higher

The Nvidia aftershock rippled across Asia’s semiconductor supply chain. Taiwan’s TSMC, Nvidia’s primary advanced-chip manufacturer, gained more than 2%. Japan’s Renesas Electronics, a key Nvidia supplier, climbed over 7%. Chipmaking equipment maker Tokyo Electron rose more than 5%, while SK Hynix, which supplies high-bandwidth memory to Nvidia, surged over 8%. Samsung Electronics added nearly 7%, aided separately by news of a tentative pay deal with its South Korean labor union.

Nvidia’s Quarter in Numbers

Nvidia itself reported revenue of $81.62 billion for the quarter, an 85% jump from $44.06 billion a year earlier. The company also announced an $80 billion share buyback and raised its dividend. Despite the blowout print, Nvidia shares slipped in after-hours trade after CEO Jensen Huang acknowledged on CNBC that the company had largely ceded China’s AI chip market to Huawei, a disclosure that tempered some enthusiasm.

Read Next: Fed Holds Rates Steady as Inflation Data Keeps Policymakers Cautious