Stories
SoftBank Investors Prioritize AI Returns Over Credit Risks, Driving Stock Rebound
M
Moneycontrol•02-10-2026, 08:00
SoftBank Investors Prioritize AI Returns Over Credit Risks, Driving Stock Rebound
- •SoftBank shares gained for the first time in four months in September, driven by optimism around OpenAI's GPT-6 Astra model and a planned $30 billion fundraising at a $1.4 trillion valuation.
- •A recovery in Arm Holdings Plc shares, where SoftBank owns almost 90%, also bolstered confidence in the tech investor's ability to finance growing debt.
- •Despite rising credit default swaps, equity investors are focusing on SoftBank's diverse AI exposure, including robotics, data centers, and energy, beyond its OpenAI commitment.
- •Analysts note SoftBank's unique exposure to the global AI boom, with a growing discount to net asset value offering an entry point for AI growth believers.
- •While some investors remain cautious due to intense competition and rising borrowing costs, most analysts expect SoftBank's stock trend to continue positively, with an average 12-month target price of 9061.
Key Questions Answered
SoftBank's equity investors focused on potential returns from AI investments, such as OpenAI's new GPT-6 Astra model and a recovery in Arm Holdings shares, helping the stock post a 24% gain over four weeks in September.
SoftBank raised $11.1 billion through the largest corporate junk bond sale on record to fund Masayoshi Son's major AI ambitions, though this resulted in higher borrowing costs.
Most analysts expect the upward trend to continue, with an average 12-month target price of ¥9061 ($57.21) compared to its recent close in Tokyo.
