SoftBank delivered better-than-expected financial results for its first fiscal quarter, thanks to a massive $8.2 billion boost from its investment in Intel. The Japanese technology conglomerate reported a net profit of 347.3 billion yen ($2.2 billion) for the June quarter, significantly surpassing analysts’ expectations despite recording an 18% decline compared to the same period last year. The strong performance highlights how strategic investments in the semiconductor sector are helping fuel SoftBank’s earnings amid the ongoing artificial intelligence boom.
The standout performer was SoftBank’s stake in U.S. chipmaker Intel, which generated an impressive 1.3 trillion yen ($8.2 billion) gain after Intel’s shares surged nearly 400% over the past year. The remarkable appreciation helped SoftBank’s investment division post a segment profit of 1.05 trillion yen, reinforcing the company’s strategy of backing businesses that are central to the global AI and semiconductor revolution. The investment has proven to be one of SoftBank’s most rewarding bets in recent years.
Meanwhile, SoftBank’s Vision Fund, home to investments in leading technology firms such as OpenAI and ByteDance, recorded a more modest performance. The fund gained approximately $1.7 billion in value during the quarter, largely driven by a $2.2 billion increase in the valuation of TikTok owner ByteDance. However, gains were partially offset by weaker performances from companies including PayPay. Notably, SoftBank reported that its investment in OpenAI neither generated gains nor losses during the quarter, a sharp contrast to the previous quarter when OpenAI was responsible for nearly $20 billion in investment gains.
Despite maintaining its aggressive commitment to artificial intelligence, SoftBank continues to face growing investor scrutiny. The company has pledged more than $60 billion to OpenAI and confirmed that roughly $55 billion has already been invested, giving it an estimated 13% ownership stake. However, concerns over the sustainability of AI spending have weighed on investor confidence, contributing to a roughly 34% decline in SoftBank’s share price since its record high in June. Investors remain focused on whether the company’s massive AI investments will deliver long-term financial returns.
Adding to the pressure, SoftBank’s AI computing division—which includes semiconductor companies such as Arm, Graphcore, and Ampere—reported a wider operating loss of 200.8 billion yen due to increased research and development spending. Nevertheless, Chief Executive Masayoshi Son remains optimistic about the future of artificial intelligence, insisting that the AI revolution is only beginning and could be “50 times bigger” than the dot-com era. While Intel has emerged as SoftBank’s biggest profit driver this quarter, the company continues betting that its long-term AI strategy will ultimately reward investors.
source: cnbc
