Dear reader,
SoftBank’s rollercoaster ride seems to have found a thrilling upswing, thanks largely to its chip design subsidiary, Arm. After suffering a substantial setback with a US$6.2 billion loss tied to WeWork and other ventures, SoftBank’s fortunes have dramatically improved. Arm’s recent blockbuster performance, exceeding revenue and earnings expectations, has injected optimism into SoftBank’s investment portfolio.
Arm’s success is propelled by the booming demand for AI technology. With major players like Microsoft and Amazon deploying custom-designed Arm chips, the company stands at the forefront of the AI revolution. As the market for tailored AI chips expands, Arm anticipates a surge in direct sales, translating into higher royalty revenues.
This success story couldn’t come at a better time for SoftBank, especially amidst challenging US-China relations impacting its investments in crucial Asian markets. Buoyed by Arm’s stellar performance, SoftBank’s Vision Fund has notched its first quarterly profit in four consecutive losses, marking a significant turnaround.
Looking ahead, SoftBank faces a pivotal decision on whether to capitalise on its Arm shares or maintain its position. The outcome will likely hinge on the continued momentum of the AI market. As technology continues to evolve, SoftBank’s strategic moves will be closely watched in the ever-changing landscape of investment and innovation.
Sainul,
Editor.
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NEWS
Arm’s gains are SoftBank’s gains
Buoyed by Arm, SoftBank’s Vision Fund posted its first quarterly profit after four straight losses and its biggest gain in nearly three years: US$4B. US shares in SoftBank were up 17% following the company’s earnings report, largely on news of Arm’s cheery quarter.
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Incomlend acquires LC Lite to reach crypto, fiat investors
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Sea Group’s MariBank crosses US$149M AUM for investment account
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Cento Ventures invests in digital procurement platform Doxa
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East Ventures co-launches emissions calculator for Indonesian companies
Ecovisea gauges emissions in three domains: emissions from company-owned sources, those from purchased energy, and indirect emissions from other parts of a company’s value chain; It uses emission factor information from Climatiq, a carbon calculation platform.
Indian central bank defends ‘proportionate’ action on Paytm
The Reserve Bank of India widened its curbs on Paytm’s Payments Bank, barring it from offering many banking services, including accepting fresh deposits and credit transactions across its services.
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