Buoyed by Arm's success, SoftBank's Vision Fund posted its first quarterly profit after four straight losses and its biggest gain in nearly three years: $4 billion. SoftBank's U.S. shares were up 17% following the company’s earnings report, largely on news of Arm’s strong quarter. However, it remains to be seen what SoftBank will do in March when it's permitted to begin selling Arm shares again. The decision will likely depend on whether the current enthusiasm for AI maintains.
Key takeaways:
- SoftBank's fortunes are improving, largely due to the success of chip design house Arm, which recently had a successful quarter that exceeded analysts' expectations.
- Arm's success is largely driven by the AI boom, with a significant portion of the chips it designs being used to accelerate AI workloads. The company expects direct sales to increase as consumers buy new devices with chip-accelerated AI features.
- SoftBank's Vision Fund posted its first quarterly profit after four straight losses, with a gain of $4 billion, largely due to Arm's successful quarter.
- SoftBank, which currently owns 90% of Arm's stock, is restricted from selling Arm shares until March. The company could potentially fuel a buyback of its own shares by selling Arm stock, depending on the continued enthusiasm for AI.