Toyota's Market Cap Slides to ¥45.7 Trillion After 4.8% Drop
TM•Toyota's market cap shrank to around 45.7 trillion yen after its stock slid 4.8% on June 1, pushing the company to second place behind SoftBank’s 47.2 trillion yen valuation. Auto sector shares fell 4.2% while AI-related stocks lifted the Nikkei 1.1% on June 1.
1. Market Cap Decline and Ranking Shift
On June 1, Toyota's shares fell 4.8%, reducing its market capitalization to around 45.7 trillion yen and ceding the title of Japan's most valuable company to SoftBank, whose market value rose to roughly 47.2 trillion yen after a 10.3% share gain. SoftBank's increase was driven by growing investor interest in its AI assets, supported by a 75 billion euro commitment to develop AI infrastructure in France.
2. Sector Rotation and Index Impact
The Tokyo auto industry group declined 4.2% as investors rotated into AI-related technology stocks, while the Nikkei climbed 1.1% to 67,038.24. This sector-wide retreat compounded pressure on Toyota, the largest auto component in the index, highlighting the growing divergence between traditional manufacturers and high-growth tech firms.
