Yahoo Finance Why Is Sony Stock Trading Higher On Tuesday?
Sony Group Corp (NYSE:SONY) stock gained Tuesday as Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) agreed to merge with Skydance Media, creating “New Paramount,” which values the combined entity at $28 billion.
In 2024, Sony stock came under pressure after the company, alongside Apollo Global Management Inc (NYSE:APO), submitted a joint $26 billion bid to acquire Paramount Global.
The offer has raised concerns about Sony’s ability to manage the acquisition, as the proposed deal surpasses Sony’s current cash reserves.
Sony stock also got a boost from Japanese semiconductor makers’ plans to inject around 5 trillion yen ($31 billion) into the sector by 2029.
The move aims to boost the production of power devices and image sensors, critical components for emerging technologies such as artificial intelligence and electric vehicles, Nikkei Asia reports.
Sony and Mitsubishi Electric are leading this initiative. Their investments will target power semiconductors, sensors, and logic chips, crucial for AI and EV growth.
From fiscal 2021 to 2026, Sony is investing approximately 1.6 trillion yen to increase the production of image sensors, driven by high demand for smartphone cameras and new applications like autonomous driving.
To this end, the Japanese government has allocated 3.9 trillion yen in subsidies from fiscal 2021 to 2023, with 3 trillion yen supporting major chip companies domestically and abroad.
Toshiba and Rohm collectively invest about 380 billion yen to boost production capacities.
Mitsubishi Electric plans to invest around 100 billion yen in a new facility in Kumamoto prefecture.
Rapidus is spearheading efforts to produce cutting-edge 2-nanometer products. The Japanese government has pledged up to 920 billion yen of the 2 trillion yen required for this project.
Price Action: SONY shares traded higher by 4.04% at $90.10 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Wikimedia Commons
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