Institution: Maintains a "Hold" rating on SoftBank; corporate bonds may face AI valuation fluctuation risks

Gold Ten Data, November 12 — CreditSights analyst Mary Pollock stated in a report that SoftBank bonds may face shocks from AI market sentiment fluctuations. She noted that SoftBank’s strong second-quarter performance was mainly driven by the rise in OpenAI’s valuation and that its cash position has improved—particularly due to the sale of Nvidia stock. “Despite the current positive outlook, the risk of a bubble in AI valuations cannot be ignored,” Pollock said. The firm recognizes the commercial prospects of AI but warns that the actual value and growth potential remain highly uncertain. Due to subsequent investments in OpenAI and the chip design company Ampere, SoftBank’s third-quarter funding needs are substantial. The company needs to adopt proactive financing strategies, which could increase market volatility. CreditSights maintains a “Hold” rating on SoftBank and recommends investors looking to increase exposure to wait for a better entry point.