SoftBank Swings to Profit on Nvidia Bet | Big AI Campaign Ahead

SoftBank has made a sharp turnaround, posting a strong profit driven by its strategic bet on Nvidia. After several quarters of losses, the Japanese tech investment giant is back in the green. This major swing isn’t just about a rebound; it signals a calculated, forward-looking strategy centered around artificial intelligence (AI), semiconductors, and bold campaigns aimed at long-term growth.

SoftBank’s Return to Profitability

SoftBank Group Corp. reported a net profit of ¥421.8 billion ($2.87 billion) for the fiscal first quarter ending June 30, 2025. This marks a dramatic shift from the ¥477.6 billion loss it posted during the same period a year earlier. The turnaround is largely attributed to the surge in the value of Nvidia Corp., which has been at the heart of the global AI boom.

Through its Vision Fund, SoftBank indirectly gained from the appreciation of Nvidia shares, especially following the blockbuster IPO of Arm Holdings. As Nvidia’s chips remain critical to powering AI applications, this strategic exposure positioned SoftBank to capitalize on one of the most significant tech trends of the decade.

Vision Fund’s Comeback Story

The Vision Fund, which had previously suffered billions in losses from tech valuations collapsing during 2022–2023, has finally shown signs of life. In Q1 FY2025, the fund posted an investment gain of ¥274.6 billion, reversing from a massive loss in the prior year. This result demonstrates the fund’s resilience and strategic pivot towards more stable, AI-aligned ventures.

Notably, SoftBank now holds a 90% stake in Arm, which went public in late 2023. Arm’s close partnership with Nvidia and its foundational role in the AI and chip ecosystem have become key revenue drivers. Investors are beginning to see SoftBank’s long-term bets pay off.

Nvidia’s Role in SoftBank’s Strategy

Nvidia (NASDAQ: NVDA) has become the cornerstone of SoftBank’s recent success. Its dominance in the AI chips market and explosive earnings growth have led to significant upward revaluation of tech holdings across the board. Nvidia’s shares have more than doubled in the past year, driving gains in related tech and AI stocks, including SoftBank’s portfolio companies.

As demand for generative AI, machine learning, and high-performance computing rises, SoftBank’s exposure to Nvidia has proven to be a winning move. The Japanese conglomerate didn’t just ride the wave; it anticipated the AI explosion years before it went mainstream.

A Bold AI Campaign Ahead

With profitability restored, SoftBank is now turning its focus to a massive AI-centered campaign. CEO Masayoshi Son, who has long been vocal about the AI revolution, announced plans to scale investments across sectors like robotics, AI software, and computing infrastructure.

SoftBank’s vision includes:

• Building AI data centers through partnerships with chip manufacturers.
• Expanding into autonomous technology and AI robotics for logistics.
• Increasing funding for AI startups through Vision Fund 3.
• Investing in companies developing foundational AI models.

The group’s financial comeback offers renewed confidence to proceed aggressively. SoftBank is not just a tech investor anymore; it aims to become a global AI enabler.

Arm’s Growing Influence

Another central pillar in SoftBank’s AI playbook is Arm Holdings (NASDAQ: ARM). Since its IPO, Arm has gained traction as a neutral supplier of chip architecture across the tech industry. Its technology powers smartphones, servers, and now AI-specific chips.

Arm is uniquely positioned to profit from:

• The shift to edge AI computing.
• Demand for customized AI chips.
• Growing reliance on energy-efficient processing units.

SoftBank’s continued stake in Arm provides exposure not just to chip design but to the fundamental shift in computing brought about by AI workloads. The success of Arm post-IPO has been critical in restoring market confidence in SoftBank’s strategic abilities.

SoftBank’s Strategic Shift and Risk Management

One of the key lessons SoftBank seems to have learned is risk diversification. During the post-pandemic tech bubble, the group over-invested in speculative startups, many of which failed. In its new phase, SoftBank is leaning towards:

• Late-stage investments with clearer revenue paths.
• Companies aligned with national tech priorities (AI, chips, defense tech).
• Strategic partnerships rather than ownership-heavy deals.

SoftBank has also moved to shore up its balance sheet, selling some of its T-Mobile stake to increase liquidity and pay down debt. This reflects a more cautious yet calculated approach.

Market Sentiment and Stock Movement

Following the earnings announcement, SoftBank shares rose over 1.3% in Tokyo trading. Analysts applauded the results and the company’s more disciplined investment strategy. Sentiment around AI stocks remains high, and SoftBank’s repositioning as an AI-first company has added fuel to the rally.

Institutional investors are taking note, with several research houses upgrading their outlook for SoftBank. Meanwhile, AI-focused ETFs and stock research platforms are listing SoftBank as a potential proxy for AI sector growth.

What’s Next for SoftBank?

SoftBank is entering a new phase, one where AI becomes the core theme. Masayoshi Son has hinted at what he calls “AI for humanity,” a future where the group invests in companies that create transformational value through technology.

We can expect:

• More AI-centric IPOs from its portfolio companies.
• Deeper ties with AI chipmakers beyond Nvidia.
• Possible expansion into AI in healthcare, energy, and education.

With a renewed focus, financial strength, and tech alignment, SoftBank is well-positioned to become one of the global leaders in the AI investment wave.

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This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.