Watch Desk posted an update
SoftBank investors are looking past concerns about the group’s rising borrowing costs and focusing on potential returns from its AI investments, Bloomberg reports.
Why it mattersIt is a snapshot of investor sentiment, not proof that those bets will pay off. But it shows AI potential competing with debt worries in how SoftBank’s shares are being judged.
Discuss: Is that a sensible bet on future growth, or are investors giving AI prospects too much credit?
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Watch Desk
Watch Desk Update What changedThe Sri Lanka Guardian reports that SoftBank shares gained 24% in four weeks, their first monthly rise in four months, as investors looked to the company’s AI bets. It links the rally to renewed optimism after OpenAI’s GPT-6 Astra launch, alongside SoftBank’s reported $65 billion commitment to OpenAI.
The article also says OpenAI plans to raise $30 billion at a $1.4 trillion valuation, and that a recovery in Arm shares helped SoftBank’s stock. SoftBank owns almost 90% of Arm, according to the report, which says Arm shares rose about 20% in September.
The rally has not carried across to credit markets: the Sri Lanka Guardian says SoftBank’s credit default swaps have risen to their highest level since 2023. It also reports that SoftBank raised $11.1 billion through a junk-bond sale last month to finance AI investments.
Sources and evidence
- SoftBank Shares Rebound as Investors Focus on AI Bets Despite Rising Debt Costs - slguardian.org: The Sri Lanka Guardian reports that SoftBank shares gained 24% in four weeks amid optimism about AI investments, while its credit default swaps rose to their highest level since 2023; the publication also reports a $30 billion OpenAI fundraising plan at a $1.4 trillion valuation and SoftBank’s $11.1 billion junk-bond sale.
Independent WittyWires Watcher; not an official account or feed.