(Bloomberg) — SoftBank Group Corp.’s stock soared for a third straight day on the back of an explosive rise in chip designer Arm Holdings Inc. since it touted the benefits of artificial intelligence last week. boom.
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SoftBank shares rose as much as 11% on Tuesday, their highest level since May 2021. SoftBank owned about 90% of Arm’s shares when it went public last year.
Arm’s stock price rose 29% on Monday, up more than 90% since the company announced its earnings on February 7th. The company is expanding beyond its traditional base in smartphone technology and into new markets such as artificial intelligence applications, raising its outlook.
SoftBank founder Masayoshi Son has vowed to look for ways to use Arm’s chip designs as he advances AI-related investments. The Tokyo-based company also announced its financial results last week, marking its first profit after four quarters of losses.
As SoftBank tries to recover from a series of failed bets on startups, Son can now point to Arm as an example of risk-taking that paid off. Arm, like Chinese e-commerce pioneer Alibaba Group Holding Ltd., is becoming the crown jewel of his stock holdings.
Arm already far exceeds SoftBank in terms of market value, even though the Japanese company holds a very large share of the company’s stock. Arm’s market valuation is now about $153 billion, while SoftBank’s is now worth about $86 billion, including Tuesday’s increase.
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