SoftBank shares surged on five times the previous day’s volume
U.S. President Donald Trump and SoftBank CEO Masayoshi Son (R) share a laugh after an aide puts out a step stool for Son as he takes the podium to speak during a news conference in the Roosevelt Room of the White House on January 21, 2025 in Washington, DC. SoftBank stock surged in Tokyo trade after the deal announcement.Photo: Andrew Harnik/Getty Images
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SoftBank shares surged — on five times the previous day’s volume — on Wednesday after the Japanese investment group landed a starring role in an U.S. artificial intelligence infrastructure buildout package backed by President Donald Trump.
Softbank will have “financial responsibility” for the project with Masayoshi Son serving as the chairman of the venture, news that drove the stock 9984+10.62% 11% higher in Tokyo. SoftBank’s top holding, ARM ARM+3.98%, will be one of the technology partners, alongside companies including Oracle ORCL+7.17% and Nvidia NVDA+2.27%.
The Stargate venture will invest an initial $100 billion that could reach $500 billion over four years.
Read: Oracle, Nvidia and other Big Tech stocks jump as Trump rolls out Stargate AI initiative
A Citigroup analyst, Mitsunobo Trsuruo, said SoftBank’s investor relations didn’t comment beyond what’s contained in the press release, but indicated it may discuss the project at the third-quarter results briefing due Feb. 12. The analyst estimated the firm could borrow an addition 5 trillion yen ($32 billion) while maintaining its preferred financial discipline.
SoftBank ended the previous quarter with a loan-to-value ratio of 12.5%, as its presentation identified 25% as a key level not to exceed.
SoftBank wasn’t the only Asian company moving on the news. Foxconn Industrial Internet 601138+10.00% , a maker of cloud computing equipment — including for Oracle — reached the limit up in the morning session in Shanghai.
Hochtief HOT+4.20%, whose Turner subsidiary is one of the largest data-center contractors, edged up 1% in Frankfurt trade.
About the Author: Steven Goldstein is based in London and responsible for MarketWatch’s coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch’s economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.
