SoftBank shares swept up in AI chip frenzy ahead of Arm IPO

SoftBank Group Corp (9984.T) shares jumped 5% in early Friday trade as the technology investor – which is preparing an initial public offering of chip designer Arm – was caught up in a frenzy for semiconductor and artificial intelligence-related stocks.

The Japanese conglomerate, which has been hit by the slumping value of its tech portfolio, has seen its shares gain 17% since last week’s close.

Still, they are up only 6.4% year-to-date, compared with 172% for U.S. chipmaker Nvidia Corp (NVDA.O) – an expected beneficiary of investment in AI – and 39% in the Philadelphia SE Semiconductor Index (.SOX).

On Friday, SoftBank passed the psychological level of 6,000 yen for the first time since February.

“We expressed a view that SBG stock will rally ahead of the ARM IPO later in the year… But given (the) market’s fascination for semi-stocks, we think it makes sense to move early,” Jefferies analyst Atul Goyal wrote in a client note, upgrading his recommendation on the stock to “buy”.

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