SoftBank beats profit expectations as chip bets compensate for muted AI gains
The Tokyo-based technology investor's net income fell 18% to ¥347.3 billion in its fiscal first quarter, compared with a market estimate of about ¥166 billion.
SoftBank Group reported a smaller-than-expected decline in quarterly net income, aided by a rally in its chip-stock holdings as it waits for greater returns from its investments in OpenAI. The company's net income dropped 18% to ¥347.3 billion ($2.2 billion) in the fiscal first quarter, falling short of the estimated ¥166 billion based on analyst consensus.
The decline was attributed to unrealized gains on chipmaker investments offsetting a decline in the value of bets on startups. OpenAI's Japanese investor has been under scrutiny due to the increasing debt levels taken on by AI service providers to fund extensive infrastructure development.
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