In early Friday trade, SoftBank Group Corp (9984.T) shares rose 5% as the technology investor, contemplating an initial public offering of chip manufacturer Arm, was caught up in a semiconductor and artificial intelligence market frenzy.
Since last week’s closing, the Japanese conglomerate’s tech portfolio-hit shares have gained 17%.
Still, they are up only 6.4% year-to-date, compared to 172% for U.S. chipmaker Nvidia Corp (NVDA.O), an expected benefactor of AI investment, and 39% for the Philadelphia SE Semiconductor Index (.SOX).
Since February, SoftBank crossed the psychological 6,000 yen mark on Friday.
We believed SBG stock would rise ahead of the ARM IPO later this year. But given (the) market’s enthusiasm for semi-stocks, we think it makes sense to move early,” Jefferies analyst Atul Goyal wrote in a client note, boosting his rating to “buy.”
Equipment makers Advantest Corp (6857.T) and Tokyo Electron Ltd (8035.T) have gained 109% and 50% year-to-date due to chip-related stock euphoria.
SoftBank CEO Masayoshi Son, who has said that artificial intelligence drives his investments, is particularly excited about generative AI, which proponents compare to the internet.
“He feels that ‘finally my time has come’,” SoftBank CFO Yoshimitsu Goto told reporters at last month’s earnings event.
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