SoftBank Shares Soar on AI Boost and Stargate Progress

- SoftBank Shares Jump 8% on AI Focus and Stargate Progress
- SoftBank Acquires Foxconn’s Ohio EV Plant for Stargate Project
- SoftBank Eyes PayPay IPO, Boosting Stock Further
SoftBank Group’s shares surged by up to 8% on Tuesday, driven by investor optimism over the company’s growing focus on artificial intelligence (AI). The Tokyo-based firm is also the unnamed buyer of Foxconn’s electric vehicle (EV) plant in Ohio, which it plans to integrate into its $500 billion Stargate data center project. This collaboration involves tech giants OpenAI and Oracle and is seen as a key step in SoftBank’s strategy to capitalize on the booming AI hardware market in the U.S.
The news has fueled expectations that SoftBank could reignite its stalled Stargate project, which has yet to fully take off. The company’s stock has now risen for five consecutive days and is on track to close at a record high. In recent years, SoftBank has been gradually selling off some of its Vision Fund investments, and this latest move is viewed as a potential game changer for its future prospects.
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In addition, SoftBank’s stock received a further boost after reports surfaced that it has hired investment banks for a potential Initial Public Offering (IPO) of PayPay, a Japanese payments app. PayPay was originally created through a joint venture with Paytm, a former Vision Fund portfolio company.
Last week, Foxconn’s Hon Hai Precision Industry confirmed the sale of the EV plant to Crescent Dune, a company not initially identified but now linked to SoftBank. The deal, valued at $375 million, marks a significant step in SoftBank’s expanding tech investments.