AI-driven SoftBank surpasses Toyota, symbol of Japanese manufacturing

*This content was translated by AI.

SoftBank Group has risen to the number one position in market capitalization on the Japanese stock market for the first time in 22 years. Shares of SoftBank closed at 8,626 yen on the Tokyo Stock Exchange, up 15% from the previous weekend, setting a record high. As a result, SoftBank's market capitalization exceeded 49 trillion yen, surpassing Toyota Motor, which had held the top spot for 22 years since December 2003.

The reversal in SoftBank's market capitalization is the result of its strategy focused on the artificial intelligence (AI) sector gaining market confidence. SoftBank announced plans to invest up to 14 trillion yen to build a super-large AI data center in France. This massive investment reflects the company's determination to secure a leading position in the global AI infrastructure market, leading to buying pressure from investors.

The shift in market capitalization between the two companies illustrates a change in industrial structure. As of March 2024, the gap in market capitalization between Toyota and SoftBank reached 50 trillion yen. However, over the past year, SoftBank's stock price has quadrupled due to the growth of generative AI, the rising value of its subsidiary ARM, and the estimated value of major investments such as OpenAI reaching 1 trillion dollars (approximately 160 trillion yen). In contrast, Toyota's stock price growth has slowed amid the transition to electric vehicles and intensifying competition in the automotive market.

Market interest in the AI industry is spreading beyond SoftBank. Memory semiconductor company Kioxia Holdings has surpassed Mitsubishi UFJ Financial Group, a financial heavyweight, in market capitalization, and semiconductor equipment maker Tokyo Electron has also entered the top 10 in market capitalization.

The leadership of Japan's industry has shifted from NTT DoCoMo in the mobile era and Toyota in the manufacturing era to the AI revolution led by SoftBank in 2026. Son Jeong-ui (Chairman)'s plan to build a super-large AI data center is becoming a new engine for the Japanese economy.

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*This content was translated by AI.