Progress with building AI ecosystem; we raise our target price: CPU business value has risen in the age of agentic AI; value of in-house AI accelerator and data center businesses also important

Research evidence excerpt

Progress with building AI ecosystem; we raise our target price: CPU business value has risen in the age of agentic AI; value of in-house AI accelerator and data center businesses also important

Global Markets Research

25 June 2026SoftBank Group

9984.T 9984 JP / EQUITY: JAPAN TELECOMMUNICATIONS

RatingProgress with building AI ecosystem; we raise our

Remains Buytarget price

Target price

CPU business value has risen in the age of agentic AI; value of in-house Increased from 9,590 JPY 10,220

AI accelerator and data center businesses also important

Closing price JPY 6,597We reiterate our Buy rating, raise our target price on progress with building AI 24 June 2026

ecosystem

The general shareholders' meeting held on 24 June provided evidence of the company's Implied upside +54.9%

progress with building an AI ecosystem centered on AI models, semiconductors, AI

infrastructure, and robots. Now that we are in the era of agentic AI, the role of CPUs,

which control agent workloads, is growing, and the business value of Arm, with its

excellent power efficiency, has been rising. We assume a certain level of equity value for Relative performance chart

the in-house accelerator and data center businesses, yielding estimated NAV of ¥10,760.

While we see a risk of share price volatility for Arm Holdings, which makes up a large part

of NAV, CPUs are becoming increasingly important. We therefore apply a NAV discount of

5.0% (previously 7.5%), yielding a target price of ¥10,220.

Factoring in in-house AI accelerator and data center businesses in NAV

We expect the company to disclose its in-house AI accelerator (which we think it is

developing together with Arm) by end-2026, and we estimate the equity value of the chip