SoftBank Surpasses Toyota as Japan's Top Company by Market Cap

For over two decades, Toyota Motor sat atop Japan's corporate hierarchy. That era is now over.

SoftBank Group's market capitalization crossed ¥48 trillion ($300 billion) on June 1, vaulting past Toyota's ¥46 trillion. The catalyst: a 14% single-day jump fueled by global investor appetite for artificial intelligence.

SoftBank stock has surged 80-90% since January. Toyota has shed over 10% in the same period. This shift marks the first meaningful change in Japan's corporate order since the 2000 internet bubble, when SoftBank briefly held the top spot before the dotcom collapse.

Masayoshi Son's conglomerate has placed substantial bets on AI infrastructure, including investments tied to OpenAI and plans for large-scale AI data centers.

The milestone signals a fundamental reordering of Japan's equity market, historically dominated by industrials and automakers. Investor enthusiasm for AI lifted multiple stocks on June 1, indicating broad appetite for tech exposure in Japanese equities.

Risk remains: AI enthusiasm may outpace AI revenue. SoftBank's Vision Fund era, highlighted by the WeWork debacle, serves as a cautionary tale for investors.