Shares of SoftBank Group surged sharply Thursday, climbing 19.8 percent and adding roughly $35 billion to the company's market capitalization, as strong results from Nvidia highlighted continued momentum in artificial intelligence.
The Japanese conglomerate's stock had fallen for five consecutive sessions before the rebound, which analysts linked directly to Nvidia's latest earnings report released overnight. SoftBank maintains significant exposure to the AI sector through its holdings in Arm Holdings and its substantial investments in OpenAI.
According to Andrew Jackson, head of Japanese equity strategy at Ortus Analysts, the rally reflects renewed optimism around a potential OpenAI listing. "The magnitude of the move was still significant given SoftBank's heavy exposure to AI-related assets," Jackson told CNBC.
SoftBank has invested more than $30 billion in OpenAI, with gains from that stake reaching $45 billion in the fiscal year ended March. The company also reported a $46 billion annual gain at its Vision Fund, driven largely by rising valuations tied to artificial intelligence projects led by founder Masayoshi Son.
Arm Holdings shares, which closed more than 15 percent higher during U.S. trading hours, further supported the gains. Arm's chip designs are widely used in AI servers and data centers that rely on Nvidia technology.
Analysts at Fitch Ratings unit CreditSights reiterated an "outperform" recommendation on SoftBank Group debt last week, noting that the rally in Arm shares has strengthened the conglomerate's balance sheet even amid aggressive AI investments.
Broader Asian semiconductor stocks tied to Nvidia's supply chain also advanced. Taiwan Semiconductor Manufacturing Co. shares rose more than 2 percent, while Japan's Renesas Electronics climbed over 7 percent. Tokyo Electron jumped 5.44 percent, and Advantest gained 2.8 percent.
In South Korea, SK Hynix surged more than 8 percent as a key supplier of high-bandwidth memory chips used by Nvidia. Samsung Electronics added 6.7 percent after the company and its labor union reached a tentative pay agreement that eased strike concerns.
Nvidia reported revenue of $81.62 billion for the quarter, an 85 percent increase from $44.06 billion a year earlier. The company also announced an $80 billion share repurchase program and raised its dividend.
Despite the strong results, Nvidia shares fell in after-market trading after Chief Executive Jensen Huang told CNBC's Sara Eisen that the company has "largely conceded" China's artificial intelligence chip market to Huawei.
Market participants had largely anticipated the positive developments, yet the scale of SoftBank's move underscored the conglomerate's deep ties to the AI ecosystem. Officials at SoftBank have emphasized continued focus on artificial intelligence as a core growth driver.
Looking ahead, investors will monitor any updates on a possible OpenAI public listing and further earnings from other technology suppliers. The sector's performance remains closely watched amid ongoing global demand for advanced computing hardware.