Japan’s SoftBank Group has reported a significant increase in net profit for the second quarter, with a more than doubling to 2.5 trillion yen ($16.2 billion) in the July-September period. This surge is largely attributed to the boom in AI-related share prices, which has sparked concerns of a potential market bubble. SoftBank, a major backer of ChatGPT-maker OpenAI, has invested heavily in tech start-ups and semiconductor firms, resulting in volatile earnings.
The company’s recent success can be partly attributed to the optimism surrounding AI technology, which has led to a rush of multi-billion-dollar deals and a surge in tech shares worldwide. The Nasdaq index, which is rich in tech stocks, has increased by 25% since May. However, this growth has also raised fears of a market bubble, similar to the dot-com boom that burst at the turn of the millennium.
SoftBank also announced the sale of $5.8 billion worth of shares in US chip giant Nvidia last month, after the quarter had ended. The reason for the sale was not disclosed, but it is speculated that it could be part of the company’s plans to boost its influence in the AI field. SoftBank’s founder, Masayoshi Son, has expressed his belief in the potential of “artificial superintelligence” and its potential to revolutionize technology and medicine.
The company’s stock has had a strong run, with a 140% increase so far in 2025, driven by excitement around its exposure to OpenAI. However, there are also reasons for caution, including the competitive landscape and the need for OpenAI to transition from a non-profit to a for-profit model. SoftBank has also announced plans to develop “physical AI” through the acquisition of Swiss-Swedish firm ABB Robotics for nearly $5.4 billion.
The AI stock boom has significant implications for the tech industry and the global economy. As companies like SoftBank and Nvidia continue to invest in AI technology, the potential for growth and innovation is substantial. However, the risks of a market bubble and the need for caution must also be considered. With the increasing investment in AI and the growing demand for AI-related products and services, the industry is likely to continue to evolve and shape the future of technology.