SoftBank Group Corp. reported a significant turnaround in its fiscal year ending March 2025, posting a net profit of 1.15 trillion yen, a stark contrast to the previous year's loss of 227.6 billion yen. This marks the company's first annual profit in four years, driven by a global stock market rally and strong performances from its investment portfolio, including gains from ByteDance and Didi. Additionally, the company's subsidiary, Arm, contributed to the positive results with its good performance. The company's Vision Fund, a key component of its investment strategy, experienced a 40% slowdown in investment gains, resulting in a pretax loss of 115 billion yen for the fiscal year. Despite this, SoftBank's overall financial health was bolstered by a 124% surge in quarterly profit to approximately $3.5 billion, attributed to resilient AI demand and improved valuations of tech startups like ByteDance and Didi. However, SoftBank's stock has been down about 17% this year amid market volatility. SoftBank's strategic focus on artificial intelligence has been a significant factor in its recovery, with the company announcing plans to invest heavily in AI infrastructure, including a $5000 billion commitment over four years to develop AI data centers. This move is part of a broader strategy to leverage AI technologies, which has been supported by gains in its holdings such as Alibaba and T-Mobile US. The company also made a $30 billion investment in OpenAI and is involved in the Stargate joint venture, further emphasizing its AI ambitions. Additionally, SoftBank acquired Ampere Computing for $6.5 billion to enhance its capabilities in AI applications.
SoftBank Group has reported a 124% jump in quarterly profit on resilient AI demand supporting startup valuations and chip unit sales, a boost to its aggressive data center investment plans. https://t.co/sVvSyt5kY8
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