SoftBank dethrones Toyota as Japan’s most valuable firm as AI frenzy reshapes markets – Firstpost

Japan’s corporate hierarchy has been upended by the global artificial intelligence boom, with SoftBank Group overtaking Toyota Motor to become the country’s most valuable listed company for the first time in more than two decades.

Shares of SoftBank surged as much as 12 per cent on Monday to a record high, capping a remarkable rally that has seen the stock gain nearly 66 per cent over the past eight trading sessions. The jump lifted the technology conglomerate’s market capitalisation above 46 trillion yen (about $288 billion), edging past Toyota’s valuation of roughly 45.8 trillion yen.

The milestone underscores a broader shift in investor sentiment, as markets increasingly favour companies linked to artificial intelligence, semiconductors and digital infrastructure while traditional manufacturing giants grapple with slowing global demand, trade uncertainties and geopolitical risks.

If the gains hold through the close, it would mark the first time since the height of the dotcom boom in 2000 that SoftBank has surpassed Toyota in market value.

AI bets power SoftBank’s meteoric rise

The rally reflects growing confidence in founder Masayoshi Son’s long-standing vision of positioning SoftBank at the centre of the AI revolution.

Investor enthusiasm strengthened after reports that OpenAI — the creator of ChatGPT and a key SoftBank-backed venture — and renewable energy developer SB Energy were exploring potential public listings in the United States. Markets have also turned increasingly bullish on Arm Holdings, the British chip designer controlled by SoftBank, which is widely viewed as a critical player in next-generation AI computing.

Adding to the optimism, SoftBank recently pledged up to €75 billion towards building a network of AI computing clusters in France, reinforcing Son’s ambition to create a global ecosystem spanning advanced chips, data centres and computing infrastructure.

The company’s shares have climbed more than 80 per cent so far in 2026, making it one of Japan’s best-performing large-cap stocks.

Toyota slips as market leadership changes

Toyota’s loss of the top spot highlights how rapidly investor priorities are evolving.

Shares of the automaker have fallen more than 10 per cent this year and were down around 4 per cent on Monday, weighed by concerns over softer global vehicle demand, rising production costs and uncertainty surrounding international trade and supply chains.

Toyota had occupied the position of Japan’s most valuable company for more than two decades after overtaking NTT Docomo in 2003, becoming a symbol of the country’s manufacturing strength and export-led economic success.

The latest shift suggests investors are placing a higher premium on future growth opportunities tied to AI and digital technologies than on the stable earnings traditionally associated with industrial champions.

AI boom fuels broader market rally

SoftBank’s rise is part of a wider surge in Japanese technology and semiconductor stocks, as investors seek exposure to the global race for AI dominance.

The Nikkei 225 gained more than 1.2 per cent on Monday, extending its strong run this year as demand for AI-linked companies continues to gather pace. Chipmakers, data-centre operators and technology firms have emerged as some of the market’s biggest beneficiaries.

Among the standout performers is memory-chip maker Kioxia, whose shares have soared more than 500 per cent this year on expectations that AI data centres will drive long-term demand for high-performance storage solutions.

Analysts at Nomura recently projected that the Nikkei could climb to 68,000 by the end of 2026 and reach 70,000 in 2027, supported by stronger earnings prospects for semiconductor and AI-related companies.