SoftBank Sells Entire Nvidia Stake for USD 5.8 Bn Ahead of New AI Investments The company also revealed plans for a 4-for-1 stock split effective January 1.
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SoftBank Group Corp. has sold its entire stake in Nvidia Corp., earning about USD 5.8 billion as it prepares for a wave of fresh investments aimed at expanding its influence in artificial intelligence. The move comes as founder Masayoshi Son continues to build a vast ecosystem around AI technology.
The Tokyo-based conglomerate had earlier raised its Nvidia stake to nearly USD 3 billion by the end of March. The profit from that holding, along with strong returns from its Vision Fund unit, enabled SoftBank to post an unexpected net income of ¥2.5 trillion (USD 16.2 billion) in the fiscal second quarter. This result far exceeded analyst expectations, which had averaged ¥418.2 billion.
The company also revealed plans for a 4-for-1 stock split effective January 1. The decision comes after a 78% rise in SoftBank's share price over the three months ending in September, marking its strongest performance since 2005.
SoftBank's investment portfolio now features several leading names in the AI sector, including OpenAI and Oracle Corp. These holdings have significantly boosted its paper gains and enhanced its global profile in emerging technologies.
"The number of bets from which SoftBank is successfully recouping its investment has increased, so we raise our forecasts," wrote Citigroup analyst Keiichi Yoneshima in a research note before the earnings release. He projected a stock target of ¥27,100, linking the estimate to OpenAI's valuation, which he expects could range from USD 500 billion to USD 1 trillion.
Masayoshi Son, 68, is intensifying his focus on AI and semiconductors while scaling back other ventures. His ambitions include developing the Stargate data center project and planning a USD 30 billion investment in OpenAI. Reports also suggest Son is in discussions with Taiwan Semiconductor Manufacturing Co. and others about creating a USD 1 trillion AI manufacturing hub in Arizona.
The challenge will be to balance the financing behind the new investments, including roughly USD 20 billion for OpenAI and USD 6.5 billion for the planned acquisition of chip designer Ampere Computing LLC. Concerns also persist about the high valuations propping up AI companies and their capital spending, and who will ultimately benefit from the big data centers and other infrastructure under construction.
"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," said a Finimize Research note on Smartkarma. "But now the discount's mostly closed, so it's likely a good time to sell and take your profits."
