Soaring Profits and Market Volatility
Japan’s SoftBank Group revealed on Tuesday that its net profit more than doubled in the second quarter, driven by a surge in AI-related stock prices that has raised concerns about a potential market bubble. The tech investment giant, known for its significant backing of OpenAI, the company behind ChatGPT, reported a net profit of 2.5 trillion yen ($16.2 billion) for the period from July to September. This marks a substantial increase from the 1.2 trillion yen recorded in the same period the previous year.
In addition to the impressive profit figures, SoftBank announced that it had sold $5.8 billion worth of shares in the US chipmaker Nvidia after the end of the quarter. This move highlights the company’s dynamic approach to investing, as its earnings are often influenced by its heavy investments in tech startups and semiconductor firms, which are known for their volatile stock performance.
The AI Investment Boom
The recent optimism surrounding artificial intelligence (AI) technology has led to a wave of multi-billion-dollar deals, causing tech stocks to soar globally. The Nasdaq index, which is heavily weighted towards technology companies, has seen a 25% increase since May. However, this rapid growth has sparked fears of a market bubble, reminiscent of the dot-com boom that collapsed at the turn of the millennium.
These concerns were further amplified when fears over high AI stock valuations led to a market sell-off last week. Nvidia, a key player in the AI space due to its chips used for training and powering generative AI systems, recently became the world’s first company valued above $5 trillion. Although its market capitalization has since dropped to around $4.8 trillion, the company remains a central figure in the AI industry.
Strategic Moves and Future Plans
SoftBank did not provide an explicit reason for selling its Nvidia shares in its earnings statement. However, Bloomberg News suggested that this could be part of plans by the company’s founder, Masayoshi Son, to enhance his influence in the AI field. At 68 years old, Son believes that “artificial superintelligence” is imminent, which he sees as a catalyst for a technological revolution with groundbreaking inventions and medical advancements.
Son made headlines earlier this year when he appeared alongside former US President Donald Trump at the White House. At that time, SoftBank partnered with OpenAI and cloud giant Oracle to lead the $500 billion Stargate project aimed at building AI infrastructure in the United States. According to some estimates, OpenAI has secured approximately $1 trillion worth of infrastructure deals in 2025, including a $300 billion agreement with Oracle.
Market Performance and Analyst Views
SoftBank’s stock has experienced a strong upward trend, according to a recent equity research report from Jefferies. The report noted that the recent surge appears to be fueled by excitement around the company’s exposure to OpenAI. As of now, SoftBank’s stock has risen more than 140% in 2025.
Despite this positive momentum, Jefferies also highlighted several areas of caution. While OpenAI has strong consumer visibility, its presence in the enterprise market remains limited. The transition of OpenAI from a non-profit to a for-profit entity is still unresolved, and its relationship with Microsoft continues to evolve. Additionally, the competitive landscape is intense, with other major players such as Google, Anthropic, and Grok making significant investments in AI.
Expanding into Physical AI
As part of its broader strategy, SoftBank recently announced its intention to acquire Swiss-Swedish firm ABB Robotics for nearly $5.4 billion. This acquisition is part of the company’s plans to develop what it refers to as “physical AI,” which involves integrating AI technologies with physical systems and robotics. This move underscores SoftBank’s commitment to expanding its footprint in the AI sector beyond software and into more tangible applications.