SoftBank Group shares surged 16.5% on Thursday, marking the company’s best day since 2020, as Japanese markets reopened after an extended holiday and investors capitalized on a global tech rally driven by artificial intelligence (AI) enthusiasm. The Nikkei 225 also hit record highs, buoyed by strong performances from other tech stocks, including Advantest (+7.8%), Tokyo Electron (+9.2%), and Renesas Electronics (+13.8%). This rally follows a record-setting day for the Nasdaq Composite, where major U.S. tech players like AMD and Arm Holdings saw substantial gains.

The surge in SoftBank’s stock is particularly notable given its close ties to AI firms like Arm and OpenAI, positioning it as a proxy for the burgeoning AI market. Analysts suggest that easing geopolitical tensions and a favorable outlook on data center infrastructure demand, spurred by AI applications, are fueling investor optimism.

For market professionals, the key takeaway is the growing significance of AI-related infrastructure, with projections indicating that the datacenter CPU market could reach $120 billion by 2030, highlighting a critical area for investment and growth in the tech sector.

Source: cnbc.com