Shares of Softbank Group Corp. surged 13% to a record high of 8,000 yen, driven by optimism over its exposure to artificial intelligence and chipmaking through its ownership of Arm Holdings. The stock marked a fourth consecutive session of gains. Analysts at SMBC Nikko hiked Softbank's price target to 8,500 yen from 5,200 yen, citing improving exposure to Arm.
Other tech companies are also seeing gains, with Lenovo hitting a record high after its AI server revenue more than doubled year over year. The rally in AI hardware stocks was boosted by NVIDIA's strong earnings print last week.
Despite the focus on AI, some companies are cutting jobs, but continue to pay billions to investors. The Big Four hyperscalers - Alphabet, Amazon, Meta Platforms, and Microsoft - have committed to spending around $750 billion in capital expenditures in 2026, mostly for AI infrastructure.
Europe, however, risks falling into a technology dependency trap, relying heavily on Asia for AI infrastructure and on American companies for large market shares in tech fields. The continent has a modest role across the AI supply chain, leaving it with limited strategic leverage and exposure to supply-chain disruptions.
In the AI space, Elon Musk and Sam Altman, co-founders of OpenAI, are engaged in a public rivalry as they prepare for initial public offerings. OpenAI is cleared to pursue going public at a $1 trillion valuation.
Alphabet recently announced a joint venture with Blackstone to offer AI compute-as-a-service built on Google's Tensor Processing Units. The company plans to supply TPUs to external customers, expanding access to its AI chips. Meanwhile, Palo Alto Networks' stock rose 5.3% after the company made AI security announcements.
Micron Technology's market capitalization surpassed $1 trillion, driven by strong demand for its memory chips. Amazon also made a move in the enterprise observability solution space with Amazon Quick.
Key Takeaways
["Softbank Group Corp.'s shares hit a record high, rising 13% to 8,000 yen, driven by AI optimism and Arm Holdings gains.", 'Lenovo hit a record high, climbing 18% to HK$18.7 as AI server revenue more than doubled year over year.', 'The Big Four hyperscalers - Alphabet, Amazon, Meta Platforms, and Microsoft - have committed to spending around $750 billion in capital expenditures in 2026, mostly for AI infrastructure.', 'Europe risks falling into a technology dependency trap, relying heavily on Asia for AI infrastructure and on American companies for large market shares in tech fields.', 'Elon Musk and Sam Altman, co-founders of OpenAI, are engaged in a public rivalry as they prepare for initial public offerings.', 'OpenAI is cleared to pursue going public at a $1 trillion valuation.', "Alphabet announced a joint venture with Blackstone to offer AI compute-as-a-service built on Google's Tensor Processing Units.", "Palo Alto Networks' stock rose 5.3% after the company made AI security announcements.", "Micron Technology's market capitalization surpassed $1 trillion, driven by strong demand for its memory chips.", '43% of companies have factored AI productivity into sales quotas, despite most lacking proven productivity gains to justify it.']Softbank shares surge to record high on AI optimism
Softbank Group Corp.'s shares hit a record high, rising 13% to 8,000 yen, driven by optimism over its exposure to artificial intelligence and chipmaking through its ownership of Arm Holdings. The stock marked a fourth consecutive session of gains. SMBC Nikko hiked Softbank's price target to 8,500 yen from 5,200 yen, citing improving exposure to Arm. Softbank's OpenAI position is worth nearly $80 billion, generating roughly $45 billion in paper gains.
AI hardware rally boosts SoftBank, Lenovo stocks
SoftBank Group shares surged 13% to a record 8,000 yen, fueled by AI optimism and ARM Holdings gains. Lenovo also hit a record, climbing 18% to HK$18.7 as AI server revenue more than doubled year over year. Investors rotated into AI infrastructure names following NVIDIA's strong earnings print last week.
Companies cut jobs for AI, but not investor payouts
Companies are cutting jobs, citing AI as a reason, but continue to pay billions to investors. The Big Four hyperscalers — Alphabet, Amazon, Meta Platforms, and Microsoft — have committed to spending around $750 billion in capital expenditures in 2026 mostly for AI infrastructure. Despite layoffs, US companies have continued delivering steady dividend growth and record shareholder payouts.
Europe risks AI dependency trap with US and Asia
Europe relies heavily on Asia for AI infrastructure and on American companies for large market shares in tech fields, risking a technology dependency trap. The continent has a modest role across the AI supply chain, leaving it with limited strategic leverage and exposure to supply-chain disruptions.
Musk and Altman's AI rivalry heats up
Elon Musk and Sam Altman, co-founders of OpenAI, are engaged in a public rivalry as they prepare for initial public offerings. Musk lost a lawsuit against Altman, and OpenAI is cleared to pursue going public at a $1 trillion valuation. SpaceX will list on the US stock market before OpenAI.
Stocks move as Pony AI rises, Autozone dips, Micron gains
Pony AI's stock rose on autonomous driving advancements, while Autozone slid amidst market pressures. Micron gained after UBS raised its price target. The stocks' movements reflect the dynamic nature of the market, influenced by company performance and analyst sentiment.
Alphabet ties AI hardware, cloud, and ads amid EU scrutiny
Alphabet announced a joint venture with Blackstone to offer AI compute-as-a-service built on Google's Tensor Processing Units. The company plans to supply TPUs to external customers, expanding access to its AI chips. EU regulators are preparing a record antitrust fine against Alphabet under the Digital Markets Act.
Palo Alto Networks stock gains on AI security announcements
Palo Alto Networks' stock rose 5.3% this week after the company made AI security announcements. The company's platformization strategy consolidates multiple cybersecurity tools onto a single integrated offering. Investors view the announcements as evidence of a widening technology advantage.
Micron joins $1 trillion club on AI chip demand
Micron Technology's market capitalization surpassed $1 trillion, driven by strong demand for its memory chips. The company's financial performance has been impressive, with strong revenue growth and profitability. Micron's competitive position is strong, but investors should carefully evaluate factors before investing.
Amazon Quick enterprise observability solution
Amazon Quick publishes usage and interaction data through vended logs to deliver chat conversations, user feedback, agent hours usage, and index storage usage in Amazon Quick. A solution consolidates this data into a secured data lake, making it accessible through Amazon Athena, Amazon Quick Sight dashboard, and an Amazon Quick custom chat agent.
Companies factor AI productivity into sales quotas
43% of companies have factored AI productivity into sales quotas, despite most lacking proven productivity gains to justify it. This reflects the growing emphasis on AI in business operations and the need for companies to adapt to changing market conditions.
Sources
- Softbank Group shares hit record high on AI cheer, ARM boost
- AI Hardware Rally: SoftBank Hits Record, Lenovo Soars
- Companies Are Cutting Jobs for AI — But Not the Billions Paid to Investors
- Europe could fall into 'dependency trap' in AI trade, report finds
- Musk and Altman’s AI rivalry reaches boiling point as IPO race heats up
- Pony AI Soars, Autozone Dips, Micron Gains on UBS Target Hike
- Alphabet Ties AI Hardware Cloud And Ads As EU Scrutiny Rises
- Palo Alto Networks Stock Gains 5.3% This Week. Here’s What AI Security Announcements Mean for 2027
- This Artificial Intelligence (AI) Chip Stock Just Joined Nvidia, Broadcom, Taiwan Semiconductor, and Samsung in the $1 Trillion Club. Is It a Buy Now?
- Build an enterprise observability solution for Amazon Quick
- 43% of companies have already priced AI productivity into sales quotas. Most haven't earned it.
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