SoftBank’s AI Ambitions Fuel Sustained Stock Surge

SoftBank JP3436100006

Shares of SoftBank Group Corp. advanced strongly, continuing a significant uptrend. The stock gained approximately 4.3% today, riding the wave of a persistent technology rally in Japan that propelled the Nikkei 225 index to a new intraday record. The core driver behind this performance is the conglomerate's strategic and deepening focus on artificial intelligence, pursued through both major investments and physical infrastructure projects.

The company's current momentum is largely attributed to an exceptionally large commitment to AI infrastructure. SoftBank recently finalized one of the largest private funding rounds in the AI sector, marking a definitive strategic shift for its investment portfolio.

Key details of the move include:
* A $41 billion investment in OpenAI finalized in late December 2025.
* An estimated resulting 11% stake in OpenAI.
* OpenAI's valuation of roughly $500 billion following a secondary offering in October.
* An additionally announced $4 billion acquisition of DigitalBridge Group.

To finance this ambitious move, SoftBank raised $22.5 billion in December. This followed earlier capital raises of $7.5 billion in April and a further $11 billion from a syndicated co-investment with partners.

Building the Physical Backbone: The Stargate Initiative

Further bolstering investor sentiment is progress on the "Stargate" project, a large-scale expansion of data center capacity designed for next-generation AI models. On January 9, OpenAI and SoftBank announced a joint infrastructure investment.

The central components are:
* SB Energy, a SoftBank subsidiary, will construct and operate a 1.2-gigawatt data center in Milam County, Texas.
* Both partners are investing $500 million each to expand the necessary power infrastructure.
* SB Energy will become an OpenAI customer, implementing ChatGPT internally for its employees.

This initiative ties SoftBank's role as a financial investor directly to tangible, physical AI infrastructure—spanning from energy supply to the practical application of AI models.

Valuation and Market Performance

Over a twelve-month period, the SoftBank ADR has roughly doubled in price, significantly outperforming the Nikkei 225, which rose 28.26% over the same timeframe.

• ADR Performance: Approximately +100% year-over-year.
• Nikkei 225 Benchmark: +28.26%.
• Market Capitalization: Around 25 trillion yen.
• Trailing P/E Ratio: 8.22.

Despite the powerful rally, the valuation based on earnings multiples does not appear extreme, particularly when considering the company's growing AI exposure.

Broadening Investor Access

Effective January 1, 2026, SoftBank executed a 4-for-1 stock split. This increased the number of outstanding shares from 1.43 billion to 5.71 billion. The lower per-share price facilitates access for retail investors, aligning with a strategy to widen the shareholder base.

Analyst Confidence in an Integrated Ecosystem

Sentiment among market analysts remains predominantly positive. BTIG initiated coverage on January 6, 2026, with a Buy rating and a price target of 5,400 yen. From recent levels, this implies an upside potential of about 22%. The firm cited SoftBank's unique positioning at the intersection of AI and robotics, including its stake in Arm Holdings and the now-finalized OpenAI investment as central pillars of its AI strategy.

The consensus average 12-month price target stands near 5,516 yen, also accompanied by a "Buy" recommendation. Analysts emphasize the emerging, vertically integrated AI ecosystem as crucial. By combining strategic holdings with concrete projects, SoftBank is covering large segments of the value chain—from digital infrastructure and data centers to the development and deployment of AI models—positioning itself at the heart of the global surge in demand for computing power.