SoftBank's Offensive Strategy and Investor Expectations

Investors at SoftBank's annual meeting seek dividends and buybacks despite ambitious AI vision and strong stock rally.

### SoftBank's AI Vision and Investor Expectations
* 💰  Investors at SoftBank's annual meeting are eager for **dividends, buybacks, and stock splits** despite Masayoshi Son's **ambitious vision for the future of AI**.
* 🛡️  SoftBank is transitioning from a defensive position to a more **offensive one**, driven by Son's vision of **AI and RSI**.
* 📈  Despite the strong rally in SoftBank's share price, up **60% this year** and **124% in Arm Holdings**, investors are focused on **tangible returns**.
* 🧠  The prevailing market belief is that companies must **embrace AI to succeed**, driving the stock price **higher**.
* 📉  While there are concerns about **lofty valuations** and the potential for **pullbacks**, the long-term bullish case for AI supports the **share price**.
* 🚀  Nvidia, the world's most valuable company, recently experienced a **16% rally this month** and is up **170% year-to-date**.
* 📉  While the current pace of the rally may not be sustainable, it is unlikely to be over, with a **more moderate slide expected** going forward.

I mean, what was so interesting about this kind of spectacle almost in SoftBank's annual meeting is Masayoshi Son wanted to talk about the big picture AMC, but investors wanted what investors always want dividend buybacks, stock split. What did you make of that? Yeah, completely. You know, I think it's quite interesting because it sort of almost brings up about a change of strategy for and for SoftBank from this sort of defensive position that I think it has had over the past few years for a much more offensive position as we have this really ambitious vision. And from Sun about RSI and the future of AI and what that means for somebody and for for SoftBank. But I think you can't get away from the fact that at the end of the day, investors do want to have returns. They have seen strong gains on the share price. You know, as you pointed out, we've seen a 60% rally in the share price so far this year.

That obviously comes on the back of a 124% rally and an arm holding. But, you know, at the end of the day, investors want to see what those numbers are bringing back, and they want to see, you know, share by share buybacks. That's going to be useful for them as well. Although, as we said, you know, the share price growth has been strong. It's hard to pick out what the prevailing factor is in the market right now. You know, at the top of the program, we talked about the concern with valuations. Video is trading at 45 times 12-month forward earnings. We're going to look at Apple's valuation later in the program. And then if you take the SoftBank example, like many investors, to summarize, there just seems to be a wholehearted belief that you have to be an AI, all layers of the stock, and if you're not, you'll be left behind. So which comes out on top.

Yeah.
You know, I think we can't get away from this idea that he has really driven such
a strong rally in stocks. And obviously, that sort of bled out into
or transferred out into record highs in the S&P 500 and on the Nasdaq this week
as well. So, you know, I think at the end of the
day, there might be this sense that perhaps the I try trade right now is a
little bit overhyped. But I think over the long term, that's
just not the case. And that's the sense that investors are
having. You know, we're just really opening the
door to the realization and the understanding of what's the real
world and applications of actually are. And that's what's really supporting the
rally that we have seen. So, you know, although as you mentioned,
there are some suggestions that there could be some level of lofty valuations
involved here.

I think at the end of the day, the long-term case is very bullish as far as they is concerned, and that's really supporting the share price. Obviously, we're going to have some pullbacks. No, no rally is just 100% higher. But I think, you know, investors are in they're in on this case we just showed in video. It's down 2% in the session. But over the course of a week where it became the world's most valuable company, it's down a percentage point. Is this rally over? Know, you know, it's just a very small move lower after some very strong waves higher. You know, this month so far, Nvidia's up around 16%, had impressive gains last week. I mean, I don't think the rally can necessarily maintain the space that it's had because it has been a really impressive speed that we've seen this share price rocket.

You know, it's up 170% so far this year,
and that's not maintainable. It's not going to be maintainable.
But I don't think that's to say that the rally is over.
I think we could just perhaps potentially expect it to slide for a
more sustainable pace going forward.

SoftBank’s Son Plans to Create ‘Super’ AI

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SoftBank's Shifting Strategy and Investor Demands

Masayoshi Son's vision for AI and the future contrasts with investors' desire for dividends and stock buybacks.

SoftBank is transitioning from a defensive to an offensive position, despite investor pressure for more tangible returns.

The company's significant stock price rally raises questions about the prevailing factors in the market and the emphasis on AI for stock performance.

The recent rally has led to record highs in the S&P 500 and Nasdaq, but there are concerns about overhyped valuations.

Despite potential pullbacks, investors are generally bullish about the long-term prospects, supporting the high share prices.

Nvidia, in particular, has seen a significant increase in its share price, raising questions about the sustainability of the rally.

The Unsustainable Growth of the Year's Rally

The year's rally has increased by 170%, which is not sustainable in the long run.

However, this doesn't mean that the rally is necessarily over, but it may slow down to a more sustainable pace in the future.