Computing power replacing horsepower: Under the AI wave, ARM surpasses Toyota to top the list of Japanese market value.

Storage chip manufacturer Kaidacera has replaced Toyota Motor to become the highest valued company in Japan, highlighting how the global artificial intelligence trend is reshaping the landscape of Japanese companies. Kaidacera's stock price soared 7.6% on Friday, pushing its market value to over 44 trillion yen (approximately 274 billion USD) just 18 months after its listing. Toyota's closing market value on the same day was 43.8 trillion yen, losing its top position to SoftBank Group at one point. This change in ranking reflects investors' increasing favor towards semiconductor companies. Globally, the demand for chips used in artificial intelligence data centers continues to rise. Since the beginning of the year, Kaidacera's stock price has surged over 670%, becoming the best-performing stock in the MSCI Global Index. Kaidacera By-passes Toyota in Market Value Yasuda Shuutarou, a market analyst at Tokai Tokyo Intelligence Laboratory Co., said that Kaidacera's rise to the top of the Japanese market value list symbolizes a broader shift as global funds continue to pour into storage chip companies. He said, "Calling it an industrial revolution may be a bit exaggerated, but this development trend does give that impression." Earlier this month, SoftBank Group briefly surpassed Toyota to become the highest valued company in Japan due to positive news related to the listing of artificial intelligence company OpenAI. However, subsequent market risk aversion caused this tech investment company's market value to drop to fourth place. Among the top twenty companies by market value in Japan, several artificial intelligence-related companies have emerged, such as Murata Manufacturing, which provides components for AI data centers, and Advantest Corporation, a manufacturer of chip testing equipment. Kaidacera's predecessor was Toshiba's storage chip business unit, which was a pioneer in NAND flash memory technology. In 2018, this business was acquired by a consortium led by Bain Capital and renamed Kaidacera a year later. In contrast to these beneficiaries of artificial intelligence, Toyota's stock price has been continuously declining, performing worse than the market. Due to tensions in the Middle East and rising oil prices suppressing car demand, Toyota's stock price has fallen by about 17% so far this year. The automotive industry is still undergoing electrification, but Toyota's transformation pace is conservative, with a fluctuating strategic layout, facing particularly significant challenges. It is reported that Toyota has been the world's largest car manufacturer in terms of sales for six consecutive years, but its electrification transformation focuses mainly on hybrids, with pure electric models contributing minimally. Pure electric vehicles (BEVs) account for only about 2% of Toyota's total sales. Toyota's Chairman Akio Toyoda stated in 2024 that pure electric vehicles can only capture a maximum of 30% market share. However, Toyoda recently admitted that he still appreciates fuel, which has made him feel "very lonely." He said, "Everyone is moving towards electrification, and that is my biggest concern."