SoftBank Shares Surge on Dual Strength from Telecom and Chip Units

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A powerful rally propelled shares of SoftBank Group on the Tokyo exchange, driven by positive developments from two of its core holdings and a supportive political shift in Japan. The stock closed Tuesday's session with a gain of approximately 10.7 percent at 4,705 yen, as investors positioned themselves ahead of the holding company's quarterly report scheduled for February 12.

Significant momentum originated from Arm Holdings, the chip design firm in which SoftBank maintains a 90 percent stake. The UK-based company reported record quarterly revenue of $1.24 billion for its third fiscal quarter. CEO Rene Haas highlighted a notable shift in the business mix, with revenue from the data center segment more than doubling.

Key developments underpinning Arm's growth:

• The data center business is on track to become its largest segment, surpassing mobile.
• Hyperscalers are increasingly adopting Arm-based custom chips.
• The company is a direct beneficiary of the global expansion in AI infrastructure.
• Arm's high valuation continues to bolster the net asset value (NAV) of SoftBank Group.

Telecom Division Raises Financial Outlook

Further impetus came from the domestic telecommunications subsidiary, SoftBank Corp. The company revised its full-year forecast upward, now projecting revenue of 6.95 trillion yen and an operating profit of 1.02 trillion yen for the fiscal year ending March 2026.

This optimistic revision is supported by results from the first nine months (April to December 2025). Both revenue and operating profit increased by eight percent, reaching 5.2 trillion yen and 884 billion yen, respectively. Net profit rose by eleven percent to 485.5 billion yen. Company management cited sustained growth in enterprise customer business and stable mobile revenue, noting that financial impacts from a cybersecurity incident at a subsidiary had been absorbed.

Political Climate in Japan Provides Tailwind

The broader market sentiment was also buoyed by Japan's political landscape. The electoral victory of Sanae Takaichi is being interpreted by investors as a signal for more intensive state-backed promotion of artificial intelligence and innovation. This expectation contributed to a wider rally in the Nikkei Index, which recently tested new all-time highs.

Additionally, a strategic partnership between TrueBusiness and SoftBank was announced on February 11, aimed at advancing AI adoption in the corporate sector. This move offers further evidence of the group's strategic realignment toward artificial intelligence.

Focus Turns to Upcoming Group Earnings

Market attention now shifts to the consolidated quarterly results from SoftBank Group, due on February 12. Investors are keen to see how the valuation gains from Arm and the steady cash flows from the telecom unit are reflected in the parent company's balance sheet. Particular focus will be on SoftBank's roughly 11 percent stake in OpenAI, with analysts anticipating potential unrealized gains given the AI firm's continued expansion.