SoftBank Shares Surge on Strong Subsidiary Results and Political Shift

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A powerful rally swept through Tokyo trading on Tuesday, propelling shares of technology investment giant SoftBank Group to a double-digit percentage gain. The surge, which saw the stock close near 4,700 yen after climbing more than 10%, was fueled by robust performance from key holdings and a significant political change in Japan that is reshaping market expectations.

A major catalyst for the advance was the decisive electoral victory of Prime Minister Sanae Takaichi. Market participants are now positioning for what is being termed the "Takaichi-Trade," anticipating aggressive government spending to bolster Japan's capabilities in artificial intelligence and semiconductor manufacturing. This policy pivot is viewed as highly favorable for SoftBank, which holds an approximately 11% stake in OpenAI and is considered a primary beneficiary of the nation's strategic refocusing. The broader market echoed this optimism, with the Nikkei 225 index advancing 2.3% to 57,650 points.

Core Holdings Demonstrate Strength

Fundamental drivers for the share price increase came from several of SoftBank's major investments. Its mobile telecommunications subsidiary, SoftBank Corp., revised its operating profit forecast upward to 1.02 trillion yen and raised its sales target to 6.95 trillion yen. This guidance upgrade follows an 11% profit increase reported for the first nine months of the fiscal year, indicating resilience in the group's core business operations.

Simultaneously, the outstanding performance of chip designer Arm Holdings provided substantial support. SoftBank maintains a majority stake in Arm, which reported record quarterly revenue of $1.242 billion for Q4 2025. The company highlighted a doubling of license revenue from data centers, underscoring the sustained, high demand for its AI hardware architectures.

Investor Focus Turns to Upcoming Earnings

Attention is now shifting to the consolidated financial results of SoftBank Group, scheduled for release between February 12th and 13th. Analysts and investors are expected to pay particular attention to the valuation of the OpenAI stake. Recent reports of monthly growth rates exceeding 10% for ChatGPT have further heightened expectations for the Vision Fund's portfolio performance. The current rally raises a central question for the market: whether this marks the beginning of a sustained re-rating for the conglomerate, driven by the AI boom and supportive new government policies.