SoftBank shares climb to highest level since May 2021, thanks to Arm Holdings’ explosive AI rally

SoftBank Group Corp. shares surged for a third day on the explosive rally of its Arm Holdings Plc., the chip designer that has almost doubled in value since making the case last week for how it will benefit from the artificial intelligence boom.

Bloomberg
Published13 Feb 2024, 06:25 AM IST
FILE PHOTO: A woman enters a SoftBank Corp branch in Tokyo May 29, 2013. REUTERS/Toru Hanai/File Photo
FILE PHOTO: A woman enters a SoftBank Corp branch in Tokyo May 29, 2013. REUTERS/Toru Hanai/File Photo(REUTERS/Toru Hanai/File Photo)

SoftBank Group Corp. shares surged for a third day on the explosive rally of its Arm Holdings Plc., the chip designer that has almost doubled in value since making the case last week for how it will benefit from the artificial intelligence boom.

SoftBank’s stock climbed as much as 11% on Tuesday, to the highest level since May of 2021. SoftBank held onto a stake of about 90% in Arm as it took the company public last year.

Also Read: SoftBank sells majority stake in Paytm before regulatory scrutiny causes stock dive

Arm’s shares rose 29% on Monday, pushing its gains to more than 90% since it reported financial results on Feb. 7. The company is expanding beyond its traditional base in smartphone technology into new markets like artificial intelligence applications, lifting its outlook.

Also Read: SoftBank books $5.2 billion quarterly loss as WeWork files for bankruptcy

SoftBank founder Masayoshi Son has pledged to explore ways to use Arm’s chip designs as he pursues AI-related investments. The Tokyo-based company also reported financial results last week, logging its first profit after four quarters of losses.

Also Read: Masayoshi Son's strategic moves propel SoftBank to expected $373 billion net income

SoftBank has been trying to recover from a series of misplaced startup bets, and Son can now point to Arm as an example of his risk-taking paying off. Arm is becoming the crown jewel among his holdings, much like Chinese e-commerce pioneer Alibaba Group Holding Ltd. did in the past.

Also Read: Arm share price spikes over 30% on upbeat sales forecast; SoftBank shares jump 10%

Arm has already far surpassed SoftBank in terms of market value, even though the Japanese company holds such a large share of the company’s equity. Arm’s market valuation is now about $153 billion, while SoftBank’s is about $86 billion including Tuesday’s rally.  

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:13 Feb 2024, 06:25 AM IST
Business NewsCompaniesNewsSoftBank shares climb to highest level since May 2021, thanks to Arm Holdings’ explosive AI rally

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Motors share price

    821.25
    01:08 PM | 11 NOV 2024
    15.55 (1.93%)

    Tata Steel share price

    145.50
    01:08 PM | 11 NOV 2024
    -2.05 (-1.39%)

    Ashok Leyland share price

    225.00
    01:08 PM | 11 NOV 2024
    3 (1.35%)

    State Bank Of India share price

    850.30
    01:08 PM | 11 NOV 2024
    7.05 (0.84%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Wipro share price

    577.05
    12:57 PM | 11 NOV 2024
    8.2 (1.44%)

    Federal Bank share price

    206.80
    12:57 PM | 11 NOV 2024
    0.05 (0.02%)

    Indian Hotels Company share price

    729.25
    12:57 PM | 11 NOV 2024
    -3.8 (-0.52%)

    Page Industries share price

    47,529.25
    12:52 PM | 11 NOV 2024
    -458.55 (-0.96%)
    More from 52 Week High

    Asian Paints share price

    2,550.30
    12:57 PM | 11 NOV 2024
    -218.95 (-7.91%)

    CE Info Systems share price

    1,899.00
    12:56 PM | 11 NOV 2024
    -156.8 (-7.63%)

    Aarti Industries share price

    440.00
    12:57 PM | 11 NOV 2024
    -34.75 (-7.32%)

    Tube Investments Of India share price

    3,650.25
    12:57 PM | 11 NOV 2024
    -235.3 (-6.06%)
    More from Top Losers

    Power Finance Corp share price

    484.20
    12:57 PM | 11 NOV 2024
    34.75 (7.73%)

    Biocon share price

    342.95
    12:56 PM | 11 NOV 2024
    21.7 (6.75%)

    Devyani International share price

    179.00
    12:57 PM | 11 NOV 2024
    8.25 (4.83%)

    Swan Energy share price

    545.40
    12:57 PM | 11 NOV 2024
    24.05 (4.61%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      78,775.00-600.00
      Chennai
      78,781.00-600.00
      Delhi
      78,933.00-600.00
      Kolkata
      78,785.00-600.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts