SoftBank Surges 12% as Earnings Beat Sparks Buying, With 26% Further Upside Seen

TradingKey - Revenue and Profit Both Crush Expectations! SoftBank Shares Surge 12%, with Potential for Another ~26% Upside.

On November 10, following the shadows of a global tech rout and widening credit spreads, SoftBank Group (9984.T) saw strong capital inflows and valuation recovery today, driven by stellar results in its latest earnings report. As of press time, SoftBank Group shares surged 12.6% on the day, breaking through the 3,800 yen ($24.05) mark to trade at 3,831 yen.

SoftBank Group's financial results beat pessimistic market expectations across the board. Net sales for its fiscal second quarter reached 1.98 trillion yen, topping the market estimate of 1.87 trillion yen, while net income came in at 214.48 billion yen, also well above the expected 199.36 billion yen. Notably, consolidated revenue for the first half of the fiscal year reached 3.79 trillion yen, marking the strongest revenue performance in the company's history.

Previously, the market was concerned that heavy investments in AI infrastructure could not be monetized quickly, but SoftBank's earnings demonstrated its formidable cash-generation capabilities with solid cloud and AI revenue growth (+37%), directly triggering massive institutional buying and forcing hedge funds that had accumulated heavy short positions last week into a short squeeze after the blockbuster report, further propelling the stock higher.

Although the market has already digested some of the positive earnings news, SoftBank is still estimated to have room for further upside. As U.S. tech stocks and the semiconductor sector rebound strongly, the value of SoftBank's holding as Arm's largest shareholder has risen alongside Arm's increasing penetration in AI chip architectures and data centers.

Bolstered by both strong earnings and the rebound in U.S. tech stocks, SoftBank's share price successfully halted its decline and bounced back. As short covering continues, bulls are gradually pushing toward higher round-number levels. From a technical analysis perspective, SoftBank's next resistance level sits near 4,800 yen—a confluence of the 0.236 Fibonacci resistance and former support dating back to August that has turned into resistance—representing roughly 26% upside from current levels.

SoftBank stock price chart, Source: TradingView

While upbeat earnings are driving heavy capital inflows into SoftBank, close attention must still be paid to how upcoming U.S. macroeconomic inflation data (CPI/PPI) this week impacts valuation multiples across tech stocks, as well as the Vision Fund's progress on monetizing its startup investments through future exits.