SoftBank's NAV almost doubled in the second quarter but July's volatility took its toll

SoftBank is often viewed by investors as a proxy for the AI trade and its volatility in recent months reflects that

SoftBank's first-quarter earnings comfortably outpaced analyst expectations but this time around, Masayoshi Son the founder and chief executive, was unable to bolster his results with an increased valuation of the SoftBank stake in OpenAI. Uncertainty around the timing of OpenAI's public listing has stalled the appreciation of its estimated value.

SoftBank's (JP:9984) net income for April, May and June was 347 billion yen (approximately $2.19 billion), comfortably beating analyst estimates ranging between 147 to 166 billion yen, according to LSEG. The number was still down 18% year-over-year but, as a holding company, with stakes in many businesses, it is the net asset value that may be most interesting to investors.

NAV reaches an all-time high amid rise in Arm's share price, as its loan-to value fell.

SoftBank's NAV jumped from 40 trillion yen in March of this year to 72 trillion yen at the end of June. It's a sizable increment but owing to the market volatility of their portfolio investments, chief financial officer Yoshimitsu Goto acknowledged that after July's stock market tumbles, that NAV had fallen back to something more like 58 trillion yen.

The NAV increase was driven by improvements in the likes of Intel. In 2025, SoftBank bought a 2% stake for $2 billion while the chip maker was in trouble and its shares were languishing at $23. This year Intel $(INTC)$ shares have boomed and SoftBank's holding is now worth around $8 billion.

SoftBank's 87% stake in British semiconductor and software design company, Arm Holdings $(ARM)$, has also boosted the NAV significantly as its market capitalization has jumped by 150% so far in 2026.

However, there was no change in the valuation of OpenAI where SoftBank owns roughly 13%. It was maintained at $852 billion where the last funding round took place in March.

CEO Son said he remains committed to its funding obligations in OpenAI (set to rise to $64 billion by October) and the construction of data centers in Ohio and northern France.

SoftBank shares fell 4.4% in Tokyo before the results announcement and have delivered a robust return of 29% for the year so far.

-Jules Rimmer