SoftBank Group witnessed a third consecutive surge in its shares, driven by the remarkable rally of its subsidiary Arm Holdings. Arm, the chip designer, has nearly doubled in value since last week, fueled by its compelling case for benefiting from the artificial intelligence (AI) boom. SoftBank's stock soared as much as 11%, reaching its highest level since May 2021, buoyed by the success of Arm. With SoftBank maintaining a stake of approximately 90% in Arm since its public offering last year, the recent surge in Arm's shares has been significant.

Arm's stock rose by 29% on Monday alone, marking a total gain of over 90% since reporting its financial results on Feb. 7. The company's expansion into new markets, particularly in AI applications, has boosted investor confidence and contributed to its optimistic outlook. Analysts recognize Arm as a high-growth stock with strong potential, especially in the AI sector. Victor Galliano, an independent analyst, emphasized Arm's premium valuation and its appeal to growth investors, citing its emergence as a prominent AI player.