SoftBank experienced a significant surge in its share prices, reaching an all-time high, showcasing a renewed confidence in the tech giant. Investors have shown a growing interest in artificial intelligence (AI) following SoftBank’s founder and CEO, Masayoshi Son’s announcement of aggressive plans in the sector. The company aims to heavily invest in AI and chip companies, betting big on their potential for growth.
During regular trading hours in Tokyo, SoftBank Group shares rose by 1.5%, closing at ¥10,705.00 (approximately $66) per share, marking their highest value to date. Tomoaki Kawasaki, a senior analyst at IwaiCosmo Securities, attributes part of this surge to the recovery of the Nikkei 225 benchmark index. However, Kawasaki also suggests that SoftBank’s reputation as a “semiconductor-related stock” has played a significant role. With the booming interest in AI tools like OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude, the demand for semiconductors or computer chips has skyrocketed.
This rise in share prices not only reflects investor confidence in SoftBank but also signifies support for Masayoshi Son’s vision for the company’s future. Last month, Son assured shareholders of SoftBank’s commitment to AI, stating that earlier investments would pale in comparison. He specifically highlighted AI chips, robotics, autonomous driving, and data centers as key sectors for investment.
Son’s net worth has also seen a substantial increase, growing by nearly $600 million or around 1.7% in just one day. His current worth is estimated to be around $34.1 billion. As a result, Son ranks as the 48th-richest person globally and the second-richest person in Japan, trailing apparel billionaire Tadashi Yanai by approximately $3 billion.
SoftBank holds a revered position among tech investors, with Son often regarded as a visionary. The company has made successful investments, such as its lucrative stake in China’s Alibaba. However, SoftBank’s reputation suffered after several high-profile setbacks in its flagship Vision Fund. Notably, it sold a 5% stake in chipmaking giant Nvidia five years ago, which would now be worth around $160 billion. Son has expressed regret about this decision. In response, the company entered a period of reevaluation but has recently embraced an offensive strategy with a focus on AI and computer chips to capitalize on the AI boom. Son has emphasized that SoftBank’s AI strategy will revolve around semiconductor company Arm, in which it holds a majority stake.
SoftBank’s attention is currently set on acquiring the British AI firm Graphcore. However, the potential takeover may face obstacles due to a national security review by the U.K. government. Governments worldwide increasingly view the sale of critical AI technologies, like semiconductor chips, as matters of national security, given their relevance to defense, critical infrastructure, and other strategically important areas.
Masayoshi Son’s dedication to AI is apparent as he sees it as his life mission to bring about an era of artificial superintelligence, where AI surpasses human intelligence by 10,000 times. He confidently positions this AI vision at the core of SoftBank’s future operations, stating, “Watch me, I will make it happen.”
The future looks promising for SoftBank as it capitalizes on the growing interest in AI and computer chips. With Masayoshi Son’s unwavering vision and the company’s reputation as a tech investment giant, it is poised to make substantial strides in the AI sector.
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