SoftBank extends scorching rally, surging over 12%, as investors crowd into AI trade

The company’s shares had closed 20% higher Thursday, adding over $35 billion to its market cap.

Softbank rally is also being powered by a sharp rise in Arm Holdings, in which the Japanese company holds a majority stake. Arm shares advanced over 16% overnight, after gaining more than 15% in the prior session.

Nvidia recent results have reinforce optimism around continued spending on AI infrastructure and data centers.

The potential OpenAI listing is also driving investors to SoftBank that has invested heavily into teh ChatGPT maker, with the IPO set to unlock substantial value for SoftBank.

The company has emerged as one of OpenAI’s largest backers, investing more than $30 billion into OpenAI and booking roughly $45 billion in related gains in the fiscal year ended March.