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Feb 13, 2026
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AVOID
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SoftBank's valuation uplift is almost entirely driven by its investment in OpenAI. Goyal notes, "Risk is essentially centered around OpenAI... circular financing concerns... buying Nvidia and others increasing Arm's [value]." The analyst highlights a "circular" risk where SoftBank invests in OpenAI, which buys chips, which boosts Nvidia, which boosts Arm (owned by SoftBank). If OpenAI's valuation falters or competition (Google/Meta) erodes its lead, the entire valuation loop for SoftBank collapses. AVOID. The stock is a leveraged bet on a single private asset (OpenAI) with opaque valuation metrics. OpenAI successfully dominates AGI, driving SoftBank stock significantly higher. |
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AI Angst Rocks Asia Markets | The Asia Trade ...
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