SoftBank Group (TSE:9984) Is Up 6.0% After Stargate AI Data Centers Unveiled with OpenAI and Oracle

• OpenAI, Oracle, and SoftBank recently announced the development of five new AI data center sites across the United States, part of the Stargate initiative, accelerating infrastructure deployment and aiming to add over 5.5 gigawatts of capacity and over 25,000 onsite jobs.
• This partnership highlights SoftBank’s role as a leading investor in AI, especially given its participation in OpenAI’s recent employee share sale, which elevated the AI company’s valuation to US$500 billion and underscored growing momentum in the sector.
• We’ll look at how SoftBank’s prominent involvement in advanced AI data centers influences its long-term investment narrative and sector positioning.

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SoftBank Group Investment Narrative Recap

To be a SoftBank Group shareholder right now is to believe in the company’s ability to drive long-term value from its leading positions in artificial intelligence, especially through major stakes in Arm and OpenAI. While the recent announcement of new AI data centers in the U.S. highlights SoftBank’s sector influence, the immediate impact on the most important short-term catalyst, timely and profitable exits from late-stage portfolio companies, remains limited. The biggest risk continues to be market sentiment shifts around high-growth tech valuations.

Among recent announcements, the OpenAI employee share sale at a US$500 billion valuation stands out. This event not only emphasizes SoftBank’s deep connection to key players in the AI space, but also reinforces optimism surrounding the monetization of AI-linked assets, which is a central theme to SoftBank’s investment story.

Yet, in contrast, investors should be aware of growing risk from tighter regulations and uncertain market appetite for high-profile tech IPOs...

Read the full narrative on SoftBank Group (it's free!)

SoftBank Group's narrative projects ¥8,650.2 billion revenue and ¥620.6 billion earnings by 2028. This requires 5.5% yearly revenue growth and a ¥1,110.8 billion decrease in earnings from ¥1,731.4 billion today.

Uncover how SoftBank Group's forecasts yield a ¥16199 fair value, a 19% downside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members provided fair value estimates for SoftBank ranging from ¥5,771 to ¥16,199, suggesting wide expectations. With ongoing enthusiasm about AI asset monetization, explore these diverse perspectives to see how opinions on future gains can vary.

Explore 3 other fair value estimates on SoftBank Group - why the stock might be worth as much as ¥16199!

Build Your Own SoftBank Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SoftBank Group research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.
• Our free SoftBank Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SoftBank Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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