About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Group 1 - SoftBank Group has reached a deal to acquire US semiconductor firm Ampere for US $6.5 billion, driven by the increasing demand for chips due to the AI boom [1][2] - The acquisition is expected to close in the second half of 2025 and is subject to regulatory approval [1][2] - Ampere Computing focuses on high-performance, energy-efficient, and sustainable AI technology based on the ARM compute platform [2] Group 2 - SoftBank is already the majority shareholder in Arm Holdings, whose technology is utilized in 99% of smartphones, indicating a strategic alignment with the acquisition [2] - In February, SoftBank and OpenAI announced a joint venture to provide advanced artificial intelligence solutions to businesses, further emphasizing SoftBank's commitment to AI [3]

Core Viewpoint - SoftBank Group is acquiring Ampere Computing for $6.5 billion in an all-cash deal to enhance its investment in AI infrastructure, with the acquisition expected to close in the second half of 2025 [1][4]. Company Overview - Ampere Computing, founded by former Intel executive Renee James, specializes in server chips based on the ARM compute platform and has a workforce of 1,000 semiconductor engineers [2][3]. - Carlyle and Oracle, the lead investors in Ampere, will sell their shares, with Carlyle holding a 59.65% stake and Oracle holding 32.27% [2]. Strategic Importance - The acquisition will strengthen SoftBank's capabilities in AI and computing, aligning with its recent initiatives, including a partnership with OpenAI and investments in AI infrastructure projects [4][5]. - Ampere's customer base includes major players like Google Cloud, Microsoft Azure, Oracle Cloud, Alibaba, and Tencent, indicating its significant market presence [3]. Future Vision - Masayoshi Son, Chairman and CEO of SoftBank, emphasized that Ampere's semiconductor expertise will accelerate the development of breakthrough computing power necessary for Artificial Super Intelligence [5]. - Ampere aims to advance its AmpereOne roadmap for high-performance Arm processors and AI in collaboration with SoftBank [6].

Core Insights - SoftBank is acquiring Ampere Computing for $6.5 billion in cash, with Ampere retaining its name and headquarters in Santa Clara, California, and operating as a subsidiary of SoftBank [1][4] - The acquisition is part of SoftBank's commitment to advancing AI innovation in the United States, leveraging Ampere's expertise in semiconductors and high-performance computing [2][4] - The deal is expected to close in the second half of the year [2]

Core Viewpoint - SoftBank Group is set to acquire Ampere Computing for $6.5 billion, with the deal expected to close in the second half of 2025 [1][2]. Group 1: Acquisition Details - The acquisition price for Ampere Computing is $6.5 billion [1]. - Carlyle Group and Oracle will sell their stakes in Ampere as part of the deal [1]. - Ampere will function as an independent subsidiary and maintain its headquarters in Santa Clara, California [2]. Group 2: Strategic Importance - SoftBank Group aims to enhance its commitment to AI innovation in the United States through this acquisition [2]. - Ampere has a workforce of 1,000 semiconductor engineers, indicating a strong talent pool in the semiconductor sector [2]. Group 3: Market Context - Arm-based chips, which Ampere specializes in, are seen as energy-efficient alternatives to x86 architecture chips from Intel and AMD [3]. - Major cloud providers like Amazon Web Services and Microsoft are adopting Arm-based chips, highlighting a growing trend in the cloud computing market [3].

Group 1 - SoftBank is investing $676 million to acquire the Sharp Sakai Plant in Osaka to convert it into an AI data center, which is essential for its AI ambitions in Japan [1][2] - The acquisition includes both land and buildings, marking a significant step for SoftBank as data centers are crucial for training AI models and running services [2] - The data center will support the joint venture SB OpenAI Japan, which aims to leverage clients' data to develop customized AI agents [4][5] Group 2 - SoftBank's collaboration with OpenAI includes plans to commercialize AI models in Japan, with a focus on deploying "Cristal Intelligence" [3][4] - The joint venture is part of a broader strategy, as SoftBank is reportedly considering a $25 billion investment in OpenAI, which is valued at nearly $300 billion [5] - The Sakai facility will be SoftBank's third data center, complementing existing operations in Tokyo and a new facility under construction in Hokkaido [6][7]

Group 1 - SoftBank Corp. is the telecom subsidiary of SoftBank Group Corp., with a 40% ownership stake by the parent company [1] - It is currently the third-largest telecom provider in Japan by subscriber base [1] - The company operates in five segments: Consumer (mobile & broadband), Enterprise (enterprise-level communications services & solutions), Media & EC (commerce & advertising), Financial (payments) [1]

Core Viewpoint - SoftBank Group Corp. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for SoftBank Group indicates expected earnings of $2.22 per share for the fiscal year ending March 2025, reflecting a substantial year-over-year increase of 476.3% [9]. - Over the past three months, the Zacks Consensus Estimate for SoftBank Group has risen by 4.2%, showcasing a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of SoftBank Group to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for near-term price movement [11]. Market Dynamics - The correlation between changes in earnings estimates and stock price movements is well-established, with institutional investors playing a role in this relationship by adjusting their valuations based on earnings revisions [5][6]. - The positive earnings outlook for SoftBank Group is expected to create buying pressure, potentially driving the stock price higher [4][6].

Group 1 - The article provides an update on SoftBank Group's Q3 2024 earnings, released on February 12, 2025, indicating ongoing analysis and insights into the company's performance [1] - The author emphasizes the importance of cash flow for both companies and investors, highlighting a value investment approach that seeks opportunities where market reactions may be disproportionate to actual performance [1] Group 2 - The author, Michael Dion, has extensive experience in finance across various industries, including Telecom, Media and Entertainment, Hospitality, and Construction, which informs his investment strategies [1] - The article does not contain any stock positions or plans to initiate positions in the companies mentioned, ensuring an unbiased perspective [2]

Group 1 - SoftBank Group reported a surprise quarterly loss, with revenue falling short of analysts' estimates [1][4] - The company's revenue was 1.83 trillion yen, slightly below the expected 1.84 trillion yen [4] - SoftBank experienced a net loss of 369.17 billion yen, contrasting with a profit of 298.53 billion yen in the previous period [4] Group 2 - In recent years, SoftBank has made several high-value investments in struggling companies, leading to markdowns in valuations [2] - The company is repositioning to capitalize on the artificial intelligence boom, with significant investments in AI-related technologies [2] - SoftBank is reportedly close to finalizing a $40 billion primary investment in OpenAI, valuing the company at $260 billion pre-money [2]