The AI boom made SoftBank the most valuable Japanese conglomerate, while Toyota fell from its pedestal

Toyota remains the world’s leading automaker, but SoftBank has surpassed it in market capitalization

*Toyota Motor Corporation* continues to hold the status of the largest automobile manufacturer worldwide. However, on some markets the company faces growing competition from Chinese brands, and its positions are beginning to wobble.

In Japan Toyota is no longer the most expensive company by market cap – that title recently passed to SoftBank. For more than twenty years Toyota was a leader among Japanese companies, but recent events have shown that the situation is changing.

How SoftBank overtook Toyota
- AI investments

SoftBank announced plans to invest up to €75 million in a network of computing clusters in France. This decision immediately lifted the company’s share price by 14 %, reaching an all‑time high.

- Market capitalization

After the price rise, SoftBank’s market cap reached $306 billion, while Toyota’s was $288 billion. As a result, Toyota shares fell about 4.5 % on the same day.

- History of leadership

SoftBank first entered the list of Japan’s largest companies in 2003, surpassing NTT Docomo by market cap. Today it remains the largest shareholder of British holding Arm, which develops processor architectures.

Overall market context
- Nikkei 225

The Nikkei 225 index has risen almost 30 % since the beginning of the year and is expected to maintain this trend through the end of the calendar year under favorable conditions.

- Other major players

Kioxia, a solid‑state drive manufacturer, became the third largest Japanese company by market cap.

- Influence of U.S. investors

Experts note that the rise in Japanese companies’ prices is largely driven by American funds’ interest in their shares. These funds seek to profit from investments in Asian issuers.

Thus, Toyota remains the world’s largest automaker, but SoftBank has already taken the lead in market capitalization thanks to active AI and technology investments. This event underscores significant changes in the structure of Japan’s leading companies and confirms growing international investor interest in the Japanese market.