SMBC Nikko raises SoftBank Group (9984) target on Arm, AI and semiconductor optimism
SMBC Nikko Securities has increased its target price for SoftBank Group Corp. to ¥8,500 from ¥5,200, citing enhanced exposure to Arm Holdings. The upgrade reflects growing market optimism regarding SoftBank Group's involvement in artificial intelligence (AI) and semiconductor manufacturing through its approximately 90% stake in Arm. This development follows a period of sustained gains for SoftBank Group shares, which reached a record high of ¥8,000 on Tuesday, May 26, extending a four-day consecutive rise.
The revised target price underscores SMBC Nikko Securities' assessment of Arm's growth potential as central to SoftBank Group's broader AI strategy. Analysts are increasingly focused on Arm's pivotal role in the development of next-generation AI chips, a factor expected to contribute significantly to SoftBank Group's corporate valuation.
Today, May 27, 2026, SoftBank Group shares are trading at ¥7,641, representing a 2.5% decline from yesterday's closing price of ¥7,841. This movement is largely viewed as a market adjustment following the substantial gains recorded in the preceding trading sessions.
Why SoftBank Group is Pausing After Its AI Sprint
SoftBank Group is essentially a giant investment company, a holding firm that pours capital into innovative technology businesses worldwide. Its crown jewel is Arm Holdings, a semiconductor design powerhouse whose blueprints are the brains behind countless devices, from your smartphone to massive data centres. SoftBank's core business model revolves around identifying promising tech ventures, investing in them, and then watching their value grow, ideally delivering substantial returns.
Today's dip in SoftBank Group's share price is largely a natural market adjustment following a very rapid ascent. Yesterday, on 26 May 2026, the company's shares soared, driven by renewed excitement around Arm's pivotal role in the artificial intelligence sector. This optimism was significantly amplified when SMBC Nikko Securities dramatically increased its price target for SoftBank Group from ¥5,200 to ¥8,500, citing heightened expectations for Arm's AI chip development. This analyst upgrade propelled the stock to an intraday record high of ¥8,000.
Against this backdrop, SoftBank Group is currently trading down 2.5% at ¥7,641, having started the day below yesterday's close of ¥7,841. This movement suggests that some investors are taking profits after the recent surge, allowing the market to cool down.
Think of it like a star athlete who has just shattered a world record in a sprint. After crossing the finish line in a blaze of glory, they naturally slow their pace, catch their breath, and allow their body to recover. Similarly, after a strong catalyst like a major analyst upgrade drives a stock to new highs, it's common for the market to take a moment to consolidate those gains and re-evaluate the sustainability of the rapid climb.
SoftBank Group Corp.
SoftBank Group Corp. (9984) is a diversified Japanese conglomerate operating across various sectors, primarily telecommunications. Its operations are structured into five key segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Latin America Funds. Beyond providing mobile, broadband, and fixed-line communication services, the company is active in mobile device sales, internet advertising, e-book distribution, and e-commerce, including the operation of fashion websites like ZOZOTOWN. SoftBank also designs microprocessor intellectual property, offers software tools, and generates renewable energy. Its extensive portfolio further encompasses alternative investment management, smartphone payment solutions, banking services, and the management of a professional baseball team. Headquartered in Tokyo, Japan, the company was established in 1981.