By Kosaku Narioka
SoftBank Group shares rose sharply after the company's chief executive, Masayoshi Son, said it plans to invest $100 billion in U.S. over the next four years.
Shares were recently 3.1% higher at 9,716 yen, equivalent to $63.03, on Tuesday in Tokyo after rising as much as 4.0% earlier.
President-elect Donald Trump and Son jointly announced Monday at Mar-a-Lago, Trump's private club in Florida, that the Japanese company planned to invest at least $100 billion in U.S. projects over the next four years.
SoftBank estimates that its U.S.-based investments will create 100,000 jobs focused on artificial intelligence and emerging technologies.
It is unclear, though, how SoftBank intends to fund the commitment. The company has roughly $30 billion of cash on hand.
The company and its tech funds have began investing more aggressively in recent months after a yearslong defensive strategy, as tech stocks have risen thanks to AI enthusiasm and the Federal Reserve's rate cuts.
Shares in SoftBank have gained about 50% so far in 2024 through Monday, boosted by hopes for growing AI-related demand at the company's investees, including subsidiary Arm Holdings.
Earlier this year, Son said he believes computers will possess human-level cognitive abilities known as artificial general intelligence within two to three years.
At an earnings briefing in November, Chief Financial Officer Yoshimitsu Goto said the group's financial footing improved on strong results, allowing it to make bigger investments selectively at the right time.
SoftBank Group's net profit for the quarter ended September was boosted by gains in its stakes in T-Mobile US and other tech companies.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
December 16, 2024 20:19 ET (01:19 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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