SoftBank Group has surpassed Toyota Motor to become Japan’s most valuable listed company, marking a dramatic reshaping of corporate leadership in the country as artificial intelligence (AI) continues to drive global market valuations higher.
SoftBank shares jumped 14% in Tokyo trading on Monday, lifting the company’s market capitalisation to just over $306 billion, ahead of Toyota’s valuation of nearly $294 billion. The milestone marks the first time in more than two decades that SoftBank has overtaken Toyota in total market value, including treasury shares.
According to Bloomberg, the last time SoftBank briefly held the top position was during Japan’s internet bubble in 2000, highlighting the historic nature of the latest shift.
The rally caps an extraordinary year for SoftBank, whose shares have climbed more than 90% in 2026 alone, driven largely by investor enthusiasm around AI-related investments and digital infrastructure expansion.
Toyota, by contrast, has declined by more than 10% over the same period, as global automakers face rising fuel costs, supply chain pressures, and the capital-intensive transition toward electric and software-defined vehicles.
SoftBank’s rise has been underpinned by aggressive investment into the AI ecosystem, particularly its partnership with OpenAI. The group has committed close to $65 billion to OpenAI, positioning itself for an estimated 13% stake by October.
The company is also expanding its footprint in AI infrastructure. Earlier this year, OpenAI and SoftBank jointly invested $1 billion in U.S.-based SB Energy, which is developing and operating a 1.2-gigawatt data centre project in Texas. The initiative forms part of the broader $500 billion Stargate programme, aimed at building large-scale AI and energy infrastructure across the United States.
SoftBank has also announced plans to invest up to $78 billion in AI data centre infrastructure in France, in collaboration with SB Energy and other strategic partners.
Analysts say the shift reflects a broader re-rating of technology companies amid the global AI investment cycle.
Kazuhiro Sasaki, head of research at Phillip Securities Japan, described the development as symbolic of a new era in global markets, telling Bloomberg: “This epoch-making event symbolises the AI boom.”
Tomo Kinoshita, global market strategist at Invesco Asset Management Japan, said SoftBank’s performance reflects a clear strategic pivot.
He noted that the company has “concentrated its management resources on AI-related businesses” and successfully capitalised on the global tech rally.
For Toyota, macroeconomic headwinds have added to industry-wide pressures. Rising oil prices linked to geopolitical tensions in the Middle East have weighed on global vehicle demand, even as the company continues its shift toward electrification and software-driven mobility solutions.
Analysts warn that the divergence between AI-focused technology firms and traditional industrial giants may continue to widen.
“Over the longer term, AI-related companies are likely to command higher valuations,” Kinoshita added, pointing to a potential structural reordering of global corporate rankings.
