SoftBank posted net income of ¥347.3 billion, roughly triple expectations, driven by a ¥1,332.9 billion gain on its Intel stake and total investment gains of ¥1,859.4 billion, yet shares fell 4.41% to ¥5,695. Investor worries center on a near-vanishing Vision Fund profit (¥5.4 billion, down 98.8%), a ¥200.8 billion loss in its AI Computing unit tied to Arm/Graphcore/Ampere, and sizable OpenAI funding of $10 billion in April and $10 billion in July with cumulative investment expected to reach $64.6 billion (~13% ownership) by October 2026, highlighting funding, investment and AI risk considerations for crypto and tech investors.

Bearish

Predictions Markets

See what traders are focused on

View analytics →

In Brief

SoftBank shares fell 4.4% despite quarterly profit tripling analyst forecasts.
The firm's Intel stake gain hit 1.33 trillion yen as shares surged.
AI Computing loss widened to ¥200.8 billion on Arm and Graphcore costs.

SoftBank Group (9984.T) stock fell 4.41% on Thursday even after its quarterly profit beat forecasts. A 1.33 trillion yen gain on its Intel stake could not ease investor worries.

The stock closed at 5,695 yen in Tokyo, down 263 yen from the prior session. Net income reached 347.3 billion yen, roughly triple the 120.23 billion yen analysts had expected, according to LSEG.

Softbank Stock Performance. Source: Google Finance

Intel Windfall Powers a Profit Beat For Softbank

SoftBank booked a 1,332.9 billion yen gain on its Intel shares during the quarter. Intel stock climbed from $44.13 to $139.63 over the period, per the company’s report.

The gain flowed through SoftBank’s investment holding arm. That unit posted segment income of 1,051.6 billion yen, reversing a 20.9 billion yen loss a year earlier.

Total investment gains reached 1,859.4 billion yen for the quarter. Net sales rose 10.9% to 2,019.6 billion yen.

OpenAI Stalls as Vision Fund Profit Nearly Vanishes

SoftBank recorded no gain or loss on its OpenAI stake this quarter. The valuation held flat from the prior fiscal year-end.

That marked a sharp shift from earlier periods when OpenAI drove large gains. Vision Funds segment income fell 98.8% year-on-year to 5.4 billion yen. In the prior quarter, OpenAI drove a Vision Fund gain of nearly $20 billion.

Meanwhile, this time the investment gain was driven by y a $2.2 billion (¥358,435 million) increase in the fair value of Bytedance. SoftBank keeps expanding its OpenAI wager. It invested $10 billion in April and another $10 billion in July.

“Upon completion of the third tranche, scheduled for October 2026, the Company’s cumulative investment in OpenAI is expected to reach $64.6 billion, representing an ownership interest of approximately 13%,” the firm said.

SoftBank’s AI Computing segment, which houses Arm, deepened its loss to 200.8 billion yen. Higher expenses at Arm, Graphcore, and Ampere drove the decline.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

Read the article at BeInCrypto