SoftBank Ends Toyota’s 22-Year Reign as Japan’s Most Valuable Firm

In a historic shift, SoftBank Group has displaced Toyota Motor as Japan’s most valuable listed company, ending an automotive reign that lasted more than two decades. On Monday, shares of the Masayoshi Son-led technology investor surged as much as 14 percent on the Tokyo Stock Exchange, propelling its market capitalisation to nearly ¥49 trillion ($306 billion), while Toyota’s valuation slipped to approximately ¥45.9 trillion. The milestone, first reached in intraday trading on Friday and confirmed at the start of the week, marks the first time SoftBank has held the top spot since the dot-com bubble of 2000.

The reversal reflects a broader rotation in global markets, where artificial intelligence has become the defining investment theme. SoftBank’s ascent has been fuelled by a blistering rally in its shares—up more than 80 percent this year—while Toyota has shed over 10 percent. Analysts in Tokyo note that the divergence is driven by the contrasting fortunes of the two industries: technology firms are riding a wave of AI enthusiasm, whereas automakers are grappling with rising crude oil prices and an uncertain transition to electric vehicles. The benchmark Nikkei 225 index briefly surged past the 67,000 level for the first time, with SoftBank alone accounting for the lion’s share of gains.

Viewed from Europe, SoftBank’s leap carries strategic implications beyond Japan’s shores. Over the weekend, Son pledged €75 billion ($87.3 billion) over five years to build AI infrastructure in France, one of the largest such commitments by a private investor. This announcement, coupled with preparing portfolio companies OpenAI and SB Energy for potential U.S. listings, has heightened expectations around SoftBank’s pivot from a troubled telecoms conglomerate to a bellwether of the AI economy. In Southeast Asia, where technology stocks often track U.S. trends, investors see the move as a validation of the region’s own tech ambitions.

The displacement of Toyota—still the world’s biggest automaker by sales—underscores a wider revaluation of industrial incumbents. As capital flocks to AI and semiconductor plays, traditional manufacturing giants risk being left behind. Whether SoftBank can sustain its lead will depend on the durability of the AI rally and the success of Son’s bold, debt-fuelled bets. For now, the Tokyo market is sending an unmistakable signal: the future belongs to the intangible.