Tokyo: Japanese giant SoftBank Group's stock surged more than 10% on Friday after the firm reported higher-than-expected financial results for the April-June quarter.

According to Anadolu Agency, the firm's profits for the April-June period rose to 421.8 billion yen ($2.87 billion), as per SoftBank's financial results released on Thursday. This marks a significant turnaround from the same period in 2024, when SoftBank experienced a loss of 174.3 billion yen ($1.18 billion).

The net sales of the firm increased by 7% year-on-year during the same period, totaling 1.82 trillion yen ($44.7 billion). The earnings for the April-June quarter surpassed market expectations, showcasing the firm's strong performance.

Additionally, SoftBank announced that the value of its Vision Funds increased by $4.8 billion, the largest rise since the June quarter of 2021, contrasting with a loss during the same period last year.

SoftBank has been heavily investing in artificial intelligence. The company led a $40 billion fundraising round for ChatGPT developer OpenAI and is awaiting the completion of its planned $6.5 billion purchase of AI chip company Ampere Computing.

According to SoftBank, the company and other investors have collectively contributed $10 billion to OpenAI, with the remaining $30 billion expected to be funded by December. Furthermore, earlier this year, SoftBank entered into joint ventures with US tech giants such as Nvidia, OpenAI, Microsoft, and Oracle to invest in AI infrastructure in the US and Japan.