SoftBank shares ride AI wave after $65b rally

SoftBank Group’s market value has surged by US$65 billion in the past four months, as investors increasingly link the company’s future to the global AI boom.

Its Tokyo-listed shares have more than doubled since early April, making it one of the top performers on the Nikkei 225.

The company has exposure to major AI players like Nvidia and reportedly an indirect stake in OpenAI. It is also joining the Trump-backed Stargate Project.

SoftBank’s share price has moved in line with rising AI investments by large tech firms.

Analysts have noted a growing correlation between its stock and US equities.

Short interest in SoftBank shares has dropped to 1.8% from nearly 4% in December, according to S&P Global.

The shares hit a record high on August 6, ahead of its upcoming earnings report.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ SoftBank’s pivot to AI infrastructure shows strategic shift from diversified tech investing

SoftBank’s recent investment moves reveal a deliberate transformation from broad tech betting to focused AI infrastructure plays.

The company tripled its Nvidia stake from $1 billion to $3 billion by March 2025, while adding $330 million in TSMC shares and $170 million in Oracle positions1. This concentrated buying coincided with Nvidia’s 90% value surge since early April and TSMC’s 40% rise over the same period1.

The timing demonstrates how SoftBank capitalized on its early positioning before the latest AI rally accelerated. Short interest dropping from nearly 4% in December to just 1.8% of free float shows investors are buying into this strategic focus rather than betting against it.

SoftBank’s Vision Fund simultaneously monetized nearly $2 billion in other assets during the first half of 2025, suggesting active portfolio rebalancing toward AI infrastructure rather than simply adding new positions1.

2️⃣ Infrastructure approach positions SoftBank as AI ecosystem enabler rather than direct competitor

SoftBank’s strategy resembles providing essential infrastructure for the AI boom rather than competing directly with AI application companies.