SoftBank Group Corp. has fully divested its stake in Nvidia Corp., securing $5.8 billion in proceeds as founder Masayoshi Son prepares for a new wave of large-scale investments to cement the company’s position in the global artificial intelligence (AI) ecosystem.
The Tokyo-based conglomerate had increased its Nvidia holdings to around $3 billion by the end of March. That investment, combined with gains from its Vision Fund unit, helped SoftBank post a surprise net income of ¥2.5 trillion ($16.2 billion) for the fiscal second quarter—far exceeding analyst estimates of ¥418.2 billion. Alongside the earnings announcement, SoftBank also revealed plans for a 4-for-1 stock split effective January 1, signaling confidence in continued growth momentum.
SoftBank’s recent financial resurgence has been fueled by its AI-centric portfolio, which includes stakes in OpenAI and Oracle Corp. These investments have driven a remarkable 78% surge in SoftBank’s share price over the three months ending in September—its strongest quarterly performance since 2005.
“The number of bets from which SoftBank is successfully recouping its investment has increased, so we raise our forecasts,” wrote Citigroup analyst Keiichi Yoneshima, who set a target price of ¥27,100 for SoftBank’s stock. He linked his valuation to OpenAI’s projected worth, estimating the ChatGPT creator could reach $500 billion to $1 trillion in the future.
At 68, Masayoshi Son is channeling his focus into AI and semiconductor ventures, even as he pares back other investments. His ambitions include the Stargate data center initiative and a potential $30 billion investment in OpenAI, along with discussions to establish a $1 trillion AI manufacturing hub in Arizona with Taiwan Semiconductor Manufacturing Co. (TSMC) and other partners. SoftBank has also reportedly considered acquiring Marvell Technology Inc.
However, Son faces challenges in financing his aggressive AI push, which could require $20 billion for OpenAI and $6.5 billion for acquiring Ampere Computing LLC. Analysts also warn of inflated valuations and uncertain long-term returns in the rapidly expanding AI infrastructure space.
As Finimize Research noted ahead of the earnings release, “The simple trade was to buy SoftBank for cheap exposure to Arm shares and a broader AI and tech mix. That idea has more than delivered – the stock’s more than doubled… But now the discount’s mostly closed, so SoftBank isn’t a ‘cheap’ way in anymore.”
