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”.