Nvidia Partnership Could Propel SoftBank Stocks Amid AI Innovations
Nvidia Partnership Signals Potential for SoftBank Stocks
Japan's SoftBank Group Corp. (OTCMKTS: SFTBY) has seen a volatile year so far. Despite a 43.22% year-to-date (YTD) increase, concerns about high AI spending have hurt stocks twice in 2024.
Stabilization and Growth in SoftBank Stocks
- Share buyback programs have helped stabilize stock prices.
- Successful initial public offerings (IPO) have also contributed positively.
Recently, on November 12, SoftBank announced a major partnership with Nvidia (NASDAQ: NVDA). This agreement could set the stage for significant growth in SoftBank stocks.
Transforming AI and Telecommunications
SoftBank is becoming Nvidia's first supercomputer customer. Plans include building Japan's most powerful AI supercomputer using Nvidia's technologies.
- Development of an AI-RAN network to run both AI and 5G workloads.
- Conversion of 200,000 base stations into mini data centers.
Booming Profits and Market Impact
SoftBank's recent Q2 2024 earnings report indicated a net profit of $7.7 billion, far exceeding analyst expectations. This financial boost signals a potential for stronger revenue streams through innovative AI solutions.
The groundwork laid by this partnership could lead to significant stock rallies, positioning SoftBank favorably in the market.
At present, SFTBY shares stand at $30.95 but experienced an initial surge of 5.6% post-announcement. As the AI-RAN system rolls out, stock prices may see further growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.