Masayoshi Son adds $4 billion to his wealth as Arm’s 192% rally

(Bloomberg) — Masayoshi Son has added about $3.8 billion to his net worth this year as Arm Holdings Plc’s rising stock price boosted the value of his holdings in SoftBank Group Corp.

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The pace of growth in his wealth puts the Japanese billionaire among the top 30 gainers among the world’s 500 richest people tracked by the Bloomberg Billionaires Index. The 66-year-old founder of SoftBank Group was worth $15.1 billion as of Tuesday, compared to $11.3 billion at the end of last year.

Son is personally benefiting from Arm’s rally as he owns about a third of SoftBank Group, which owns 90% of the UK chip designer. Arm extended its three-day rally by 90% after last week’s earnings report showed AI spending was boosting sales. The stock is now worth nearly three times its initial public offering price of $51. SoftBank shares are trading near three-year highs.

“As long as its assets continue to grow, people won’t say SoftBank is overvalued,” said Masahiro Yamaguchi, senior market analyst at SMBC Trust Bank Ltd. This does not seem unreasonable given that it will be supported by solid earnings growth in the future.

Arm gave a bullish forecast when it reported financial results last week, suggesting the company could expand beyond its traditional smartphone business and enter artificial intelligence and other promising markets. Yamaguchi said investors could take cues from Nvidia Corp’s earnings next week to gauge whether the latest gains are excessive.

According to Victor Galliano, an independent analyst publishing on SmartKarma, Arm’s current level of pricing is a “super-premium” as Nvidia trades at less than half the potential earnings multiple for a very similar price…

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