SoftBank Soars High Like MJ in '96 Thanks to AI and Arm

• SoftBank Group's shares surged after SoftBank Corp raised its full-year profit outlook.
• Arm Holdings' AI-driven growth beyond smartphones significantly boosted SoftBank's prospects.
• SoftBank Corp's revenue and operating income hit record levels, reflecting strong fiscal execution.
• Arm posted record quarterly revenue, driven by high demand for AI-related technologies.

Sky High Profits, Just Like My Jump Shot

Alright, alright, settle down folks. You're seeing SoftBank Group catching air, just like yours truly back in '96. The stock's up over 10%, and that's not just luck. SoftBank Corp, their telecom arm, is calling the shots, raising its full-year profit outlook. It's like knowing where the open man is before he even cuts – pure vision and execution. Remember, talent wins games, but teamwork and intelligence wins championships. They're playing chess, not checkers.

Arm's AI Game Is No Fluke

Then you got Arm Holdings, adding fuel to the fire. Renewed optimism? That's an understatement. They're not just playing around; they're building an AI empire. Andrew Jackson at Ortus Advisors gets it: Arm's upside is increasingly driven by AI-linked growth beyond smartphones. It's like switching from shooting free throws to hitting game-winners – a whole different level. If you want to understand more about the technology and market expectations, read AMD's AI Ambitions Temper Market Expectations.

Numbers Don't Lie; Rings Don't Either

Let's talk numbers. SoftBank Corp's revenue for the first nine months of fiscal 2025? A record 5.2 trillion yen, up 8%. Operating income also climbed 8% to 884 billion yen. See, I always said, “You have to expect things of yourself before you can do them.” And they did it. They lifted their full-year revenue forecast to 6.95 trillion yen and increased their operating income target to 1.02 trillion yen. That's not just playing the game; that's dominating it.

Consumer Business Adjustment Is a Smart Play

They're even fine-tuning their consumer business, prioritizing long-term profitability over just chasing subscriber numbers. Smart move. It's like knowing when to pull back and reassess your strategy. As I always say, “Sometimes, things may not go your way, but the effort should be there every single night.” And their effort is paying off, even with slight subscriber dips. They're setting themselves up for a dynasty.

Arm's Data Center Dominance on the Horizon

Now, Rene Haas, CEO of Arm, is talking big. "Our data center royalty revenue has grown more than 100% year-on-year, and we expect in a few years our data center business to be our largest business, larger than mobile." That's confidence, folks. They're aiming to supply half of the central processing units used by the world's largest cloud computing companies. That’s like saying you’re going to win MVP, Finals MVP, and Defensive Player of the Year. Ambitious, but possible with the right team and execution.

Beating Estimates, Like Beating the Buzzer

Even with a slight miss on licensing revenue estimates, Arm posted record quarterly revenue of $1.242 billion, driven by AI demand. They beat LSEG SmartEstimates, proving they can still surprise even the experts. It's like hitting a buzzer-beater when everyone thinks you’re down – never count them out. So, yeah, SoftBank and Arm are looking good. They're not just playing the game; they're changing it. And that's how you become a legend.