Asset Management

SoftBank’s $118bn Arm problem

Its stake in chip firm Arm is now worth much more than it is — in theory, at least

Shares of Arm have risen 67% since it disclosed better-than-expected results this month
Shares of Arm have risen 67% since it disclosed better-than-expected results this month Photo: Jakub Porzycki/Getty Images

Japan’s SoftBank has a prime perch at the artificial intelligence table thanks to its 90% stake in chip designer Arm, which is raking in cash from the AI boom.

Monetising that good luck could be surprisingly challenging. But if the past is prologue, SoftBank will find a way. That could mean its shares head higher, at least until the AI frenzy dies down.

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