Masayoshi Son net worth has surged by approximately $3.8 billion this year, driven by the soaring stock price of Arm Holdings Plc, which has bolstered the value of his holdings in SoftBank Group Corp.
This rapid increase places the Japanese billionaire among the top 30 gainers among the world’s 500 richest individuals tracked by the Bloomberg Billionaires Index. As of Tuesday, the 66-year-old founder of SoftBank Group had a net worth of $15.1 billion, compared to $11.3 billion at the end of last year.
Son is directly benefiting from the rally in Arm’s stock price, as he owns roughly a third of SoftBank Group, which in turn holds 90% of the UK chip designer. Arm’s stock has surged by 90% over the past three days following its earnings report, which highlighted the boost in sales from increased spending on artificial intelligence. The stock has nearly tripled from its initial public offering price of $51, while SoftBank shares are trading near a three-year high.
“While the surge in Arm’s stock may appear overheated, if investors believe it will be supported by strong earnings growth in the future, it doesn’t seem out of place,” said Masahiro Yamaguchi, senior market analyst at SMBC Trust Bank Ltd.
Arm provided an optimistic forecast in its recent financial results, indicating its ability to expand beyond its traditional smartphone business into artificial intelligence and other promising markets. Investors are expected to look to Nvidia Corp.’s earnings next week for insights into whether the recent gains are justified.
However, some analysts caution that Arm’s current valuation is “eye-wateringly rich,” with comparisons drawn to Nvidia, which trades at a lower prospective earnings multiple despite similar forward earnings-per-share growth.
SoftBank shares continue to trade at a significant discount to its net asset value, partly due to losses incurred by its Vision Fund unit following a post-pandemic slump that impacted tech valuations globally. The second Vision Fund remains in the red, contributing to Son’s personal liabilities of around $5.3 billion linked to side deals set up at SoftBank Group to enhance his compensation.
Overall, the fortunes of the Vision Fund 2 holdings need a considerable positive shift to alleviate Son’s financial obligations to SoftBank, which currently appears unlikely, according to analysts.
