Softbank Stock Explodes 135% in 4 Months—Is This Rally Sustainable or Pure Mania?
Softbank shares just ripped through the stratosphere—up a staggering 135% in barely four months. That kind of vertical move doesn’t just turn heads; it sets off alarm bells.
Investors are scrambling. Is this the start of a new tech-driven empire, or another classic bubble-in-the-making?
Let’s be real—when a stock moves this hard, this fast, somebody’s getting rich, and somebody’s about to get wrecked. Welcome to momentum trading, where fundamentals take a backseat and FOMO drives the bus.
Remember WeWork? Vision Fund? Exactly. Softbank’s got form when it comes to swinging big and missing bigger. Maybe this time it’s different. Or maybe not.
Either way, if you’re not already in, you’re probably late. And if you are in—good luck timing the top.
Lee says he is not “overly bullish” on Softbank
Softbank’s shares are further above consensus price targets than at any time since 2010, a pattern that in the past has preceded pullbacks. Some analysts, including Angus Lee, a fund manager at Sparx Asset Management, who recently bought SoftBank shares, believe the company’s stock ROSE too quickly.
Lee stated the firm’s stock appears “overheated in the short term,” noting that he isn’t overly bullish. He even admitted to taking profits recently. However, he argued that he still sees long-term appeal in SoftBank, citing possible IPOs of companies.
Kazuhiro Sasaki, head of research at Phillip Securities Japan Ltd, also commented on Softbank’s stock surge, saying, “It suggests the rally is more than just about the fundamental factors.” He explained that some demand for SoftBank came as investors broadened exposure to the Nikkei 225, which advanced to record levels this week. Though at around a 30% discount to NAV per share—down from 48% in late July—SoftBank’s shares look less compelling from a valuation perspective.
Softbank plans to buy a $2 billion stake in Intel
SoftBank recently revealed plans to acquire a $2 billion (£1.5 billion) stake in Intel, driving the chipmaker’s shares up. However, Softbank’s stock dipped 5% on the same day. On the other hand, Intel’s stock rose by over 5% after-hours trading in New York on Monday.
The announcement followed reports that the TRUMP administration is exploring a 10% stake in Intel by exchanging government grants for equity as previously reported by Cryptopolitan. First reported last week, the proposed deal aims to back Intel’s plans for a flagship manufacturing hub in Ohio.
A WHITE House spokesman, however, cautioned that the arrangement “should be treated as speculation” until officially confirmed. The administration has previously voiced concerns over Intel’s leadership, with President Trump reportedly urging CEO Lip-Bu Tan to resign amid questions about the company’s strategic direction.
Nonetheless, Softbank is expected to pay Intel $23 per share for its deal. However, the firm’s shares dwindled 9% Wednesday, as tech stocks in Asia declined. Shares in the Japanese tech-focused firm extended their losses into a second session despite the Intel news.
Overall, Japanese tech shares broadly weakened, including Advantest, which sank as much as 6.27%. Renesas Electronics was down 2.46%, and Tokyo Electron fell 0.75%. The overnight selloff in Nvidia also weighed on US technology stocks and, in turn, pressured tech names in South Korea, Taiwan, and Hong Kong. Taiwan’s TSMC eased 1.69%, and Hon Hai Precision Industry (Foxconn) lost 2.16%. TSMC still makes Nvidia’s powerful GPUs, while Foxconn has joined Nvidia to establish “AI factories.”
The decline in these AI and chip companies has worried some analysts. Though Jayson Bronchetti, chief investment officer at Lincoln Financial, insists, “The AI trade may not be breaking, but it could be catching its breath.”
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