Core Viewpoint - SoftBank Group has acquired Foxconn's electric vehicle factory in Ohio for $375 million, aiming to initiate a $500 billion "Gateway to the Stars" data center project in collaboration with OpenAI and Oracle [1] Group 1 - SoftBank's acquisition of the factory is part of a larger strategy to invest in data center infrastructure [1] - Foxconn's parent company, Hon Hai, agreed to sell the electric vehicle factory to Crescent Dune LLC for $375 million, although the identity of the buyer was initially undisclosed [1] - Sources indicate that SoftBank is the actual buyer behind the transaction [1]

Group 1 - SoftBank has acquired Foxconn's electric vehicle factory in Ohio to initiate the $500 billion "Stargate" data center project in collaboration with OpenAI and Oracle [1] - Foxconn's parent company, Hon Hai Precision, agreed to sell the factory for $375 million, with SoftBank identified as the buyer [1] - Hon Hai Precision's involvement is expected to support SoftBank's founder Masayoshi Son in capitalizing on the growing AI hardware investment wave [1] Group 2 - SoftBank and Foxconn previously collaborated on the humanoid robot "Pepper" and have established a joint venture to build data centers and manufacturing projects in the U.S., each investing $735 million [2] - SoftBank is evaluating multiple potential sites for the "Stargate" project, considering factors like water supply, electricity, and communication network access [2] - The company has acknowledged that the timeline for launching the "Stargate" project is longer than anticipated, with CFO Yoshimitsu Goto indicating slow progress [2] Group 3 - OpenAI is advancing other "Stargate" branded data center projects, including one in Abilene, Texas, which started before the announcement of the "Stargate" project [3] - OpenAI has announced a collaboration with Nscale and Aker to build a project named "Stargate Norway," marking its first data center initiative in Europe [3] - OpenAI also revealed the "Stargate UAE" project just over two months ago, expanding its international footprint [3]

Core Insights - Nvidia CEO Jensen Huang met multiple times with Masayoshi Son at the Taipei International Computer Show to discuss the Stargate project [1] Group 1 - The meetings between Nvidia and SoftBank's Son indicate a strategic collaboration focus on the Stargate project [1]

Domestic News - The People's Bank of China reported that as of the end of April, the country's gold reserves reached 73.77 million ounces, an increase of 70,000 ounces month-on-month, marking the sixth consecutive month of gold accumulation [3] - The China Securities Regulatory Commission issued an action plan to promote the high-quality development of public funds [3] - The China Passenger Car Association estimated that wholesale sales of new energy passenger vehicles in April reached 1.14 million units, a year-on-year increase of 42% and a month-on-month increase of 1%. Cumulatively, from January to April, wholesale sales reached 4 million units, also a year-on-year increase of 42% [3] - A total of 1.92 million new A-share accounts were opened in April, representing a year-on-year increase of 31% [3] International News - Goldman Sachs raised its copper price forecasts for the second and third quarters to $9,330 per ton and $9,150 per ton, respectively, up from previous forecasts of $8,620 and $8,370 [2] - The U.S. domestic crude oil production for the week ending May 2 was reported to be the lowest since January 24, 2025, while the EIA strategic petroleum reserve inventory reached the highest level since October 28, 2022 [2] - The German Defense Minister plans to increase defense spending to over €60 billion annually starting in 2025 [2] - The EU trade chief indicated that the European Commission will announce preparations for countermeasures against U.S. tariffs, with potential tariffs on U.S.-made cars if trade negotiations fail [2]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported strong performance in FY2025, with revenue and net profit exceeding market expectations, driven by high demand in the data center segment and robust sales of the B series products [2][3] - The company anticipates continued growth in revenue and net profit for FY2026 and FY2027, with upward revisions to profit forecasts due to sustained capital expenditure in the downstream market [11] Financial Performance Summary - For FY2025, total revenue is projected at $130.5 billion, a year-on-year increase of 114.2%, with net profit expected to reach $72.9 billion, reflecting a 144.89% increase [1] - The company achieved a Non-GAAP gross margin of 73.5% in Q4 FY2025, although it showed a slight decline compared to the previous year [2] - The data center business generated $115.2 billion in revenue for FY2025, marking a 142% year-on-year increase, with significant contributions from major cloud service providers [3] Product and Market Developments - The B series product line has seen revenue of $11 billion in Q4 FY2025, surpassing expectations, with the B300 series set to launch in H2 FY2025 [3] - The company has established new partnerships in the automotive sector, collaborating with Toyota and Hyundai to integrate its technology into next-generation vehicles [4] Future Guidance - For Q1 FY2026, the company expects revenue of approximately $43 billion, slightly above market consensus, with a Non-GAAP gross margin forecasted at 71% [5] - The company anticipates a recovery in network business growth in FY2026, following the rollout of the Blackwell architecture [5]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported strong financial results for FY2025, with total revenue reaching $130.5 billion, a year-on-year increase of 114.2%, and net profit of $72.9 billion, up 144.89% year-on-year [2][3]. - Demand from cloud service providers (CSPs) remains robust, with data center revenue for Q4 2025 at $35.58 billion, a 16% increase quarter-on-quarter and a 142% increase year-on-year [3]. - The company has introduced new products, including the B series, which generated $11 billion in revenue for Q4 2025, exceeding expectations [3]. - The gaming and AIPC segments faced challenges due to supply chain constraints, but the automotive business saw significant growth, with a 103% year-on-year increase [4]. - Guidance for Q1 FY2026 is slightly above market expectations, with projected revenue of $43 billion, higher than Bloomberg's consensus of $42.26 billion [5]. Financial Summary - Total revenue projections for FY2026 are $209.2 billion, with net profit expected to reach $114.1 billion, reflecting a growth rate of 56.61% [1][11]. - The company's earnings per share (EPS) is forecasted to increase from $2.99 in FY2025 to $4.68 in FY2026, indicating strong profitability [1][11]. - The price-to-earnings (P/E) ratio is projected to decrease from 38.19 in FY2025 to 24.38 in FY2026, suggesting potential for valuation improvement [1][11].