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SoftBank's Market Cap Halves From Peak over AI Fears
Investors worry the group’s debt-fueled AI push is becoming harder to finance after CoreWeave bond stress and a record $11.1 billion junk-bond sale.
- SoftBank Group shares fell 6.9% on Thursday, marking a 50% decline from their June peak as the Tokyo-based company's market capitalization dropped to about $157 billion, now smaller than Hitachi and Recruit.
- Global concerns over AI spending accelerated after CoreWeave bonds fell to distress levels, exposing financing risks that dented confidence among equity investors focused on SoftBank's AI investments.
- SoftBank raised $11.1 billion in September via record junk bond sales to finance founder Masayoshi Son's AI ambitions, while the company is down more than 30% this month and invested almost $65 billion in OpenAI, which faces Chinese rivals.
- Credit-Default swaps for SoftBank rose to the highest level in nearly four years on Tuesday, with investment manager Kazuyuki Muramatsu of Nagomi Capital citing the group's highly leveraged financial structure and rising borrowing costs.
- If global sentiment toward the AI growth story turns sour, the Vision Fund may face valuation losses, potentially requiring higher premiums for future funding and amplifying SoftBank's refinancing challenges.
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10 Articles
10 Articles
The Economic TimesReposted by 
Times of India
Times of IndiaSoftBank's market cap halves from peak over AI fears
Global concerns over AI spending had accelerated after America-based cloud-computing provider CoreWeave Inc.'s bonds fell to levels associated with distress, exposing financing risks across the industry.
·Mumbai, India
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SoftBank Market Value Poised to Halve From Peak as AI Fears Grow
SoftBank Group Corp.’s market value is poised to halve from its peak in June, as higher borrowing costs fuel investor concerns over the sustainability of its massive investments in artificial intelligence.
·New York, United States
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Shares of the Japanese conglomerate have accumulated a 50% decrease since June, while investors question the sustainability of billion-dollar investments in AI and the increase in financing costs
Coverage Details
Total News Sources10
Leaning Left0Leaning Right1Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
C 75%
R 25%
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