{"id":45936,"date":"2025-12-11T11:35:16","date_gmt":"2025-12-11T11:35:16","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/11\/softbank-shares-slide-as-oracles-earnings-revive-concerns-over-ai-investment-payoffs\/"},"modified":"2025-12-11T11:35:16","modified_gmt":"2025-12-11T11:35:16","slug":"softbank-shares-slide-as-oracles-earnings-revive-concerns-over-ai-investment-payoffs","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/11\/softbank-shares-slide-as-oracles-earnings-revive-concerns-over-ai-investment-payoffs\/","title":{"rendered":"SoftBank shares slide as Oracle\u2019s earnings revive concerns over AI investment payoffs"},"content":{"rendered":"
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SoftBank Group shares fell sharply on Thursday after Oracle\u2019s weaker-than-expected quarterly results renewed worries about how long it will take for massive investments in artificial intelligence infrastructure to translate into profits. <\/p>\n

The stock closed down nearly 7.7% in Tokyo, having dropped as much as 8.4% intraday, dragging the broader market lower.<\/p>\n

Oracle said its revenue and operating income for the latest quarter came in slightly below analysts\u2019 expectations, while also raising its spending forecast. <\/p>\n

The cloud-computing company\u2019s updated outlook added to concerns that the industry\u2019s aggressive data-center buildout may take longer than anticipated to generate returns, particularly as power-hungry AI models require significant upfront investment.<\/p>\n

Oracle\u2019s miss sends ripples through SoftBank\u2019s AI plans<\/h2>\n

SoftBank has deep exposure to Oracle through its ambitious AI partnerships. <\/p>\n

In January, SoftBank Group and OpenAI announced plans to invest up to half a trillion dollars in US AI infrastructure, alongside Oracle and other partners. <\/p>\n

SoftBank is expected to lead the financing for the initiative, while OpenAI will oversee operations.<\/p>\n

The trio, along with Oracle, also announced in September five new US AI data-center sites under the project known as Stargate. <\/p>\n

Oracle\u2019s underwhelming earnings and escalating capital expenditures have therefore raised questions about whether these large-scale infrastructure plans will progress on schedule.<\/p>\n

\u201cThe Nikkei opened higher to track overnight Wall Street gains, but the advance was erased by declines in SoftBank Group,\u201d said Tokai Tokyo Intelligence Laboratory market analyst Shuutarou Yasuda. <\/p>\n

\u201cOracle\u2019s earnings raised concerns about whether the data-center project involving SoftBank would proceed as expected.\u201d<\/p>\n

AI spending grows faster than returns<\/h2>\n

Oracle\u2019s updated financial projections deepened investor unease. <\/p>\n

The company forecast adjusted profit of $1.64 to $1.68 per share for the current quarter\u2014below analyst expectations\u2014and projected revenue growth of 16% to 18%, also missing estimates.<\/p>\n

More significantly, Oracle said capital expenditures for fiscal 2026 would be $15 billion higher than previously expected, bringing total planned spending far above the September estimate of $35 billion. <\/p>\n

Analysts said the rapid increase in investment requirements has unsettled markets.<\/p>\n

\u201cThe ramp in capex and unclear debt needs are causing uncertainty among investors,\u201d said Melissa Otto, head of research at S&P Global\u2019s Visible Alpha.<\/p>\n

SoftBank volatility persists amid broader AI race<\/h2>\n

SoftBank shares have swung sharply in recent weeks amid growing caution over the surge in AI-related stocks and speculation that Google may be pulling ahead in the AI race, a potential challenge for OpenAI\u2014one of SoftBank\u2019s most important investees.<\/p>\n

SoftBank\u2019s mobile-carrier unit, SoftBank Corp., announced last month it would partner with Oracle to provide sovereign cloud and AI services in Japan, further deepening ties between the two companies.<\/p>\n

But with Oracle\u2019s results seen as a bellwether for the capital-intensive AI infrastructure sector, the latest earnings have heightened investor scrutiny of how soon major tech and telecom groups will see returns on their multibillion-dollar AI bets.<\/p>\n

The post SoftBank shares slide as Oracle\u2019s earnings revive concerns over AI investment payoffs<\/a> appeared first on Invezz<\/a><\/p>\n

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SoftBank Group shares fell sharply on Thursday after Oracle\u2019s weaker-than-expected quarterly results renewed worries about how long it will take for massive investments in artificial intelligence infrastructure to translate into profits. The stock closed down nearly 7.7% in Tokyo, having dropped as much as 8.4% intraday, dragging the broader market lower. Oracle said its revenue <\/p>\n","protected":false},"author":1,"featured_media":45937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-45936","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=45936"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/45937"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=45936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=45936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=45936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}