NVIDIA (NVDA) sold by SoftBank for $3.3 billion in 2019 it would now be worth more than $150 billion.
SoftBank liquidated its remaining 32.1 million Nvidia shares in October for $5.83 billion to fund new investments.
SoftBank is putting proceeds toward a $22.5 billion commitment to OpenAI and other AI companies.
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NVIDIA (NASDAQ:NVDA) is a powerhouse in the semiconductor industry, specializing in graphics processing units (GPUs) that power everything from gaming to artificial intelligence. In 2017, SoftBank Group emerged as one of its largest investors, amassing a $4 billion stake that made him the fourth-largest shareholder at the time. This investment highlighted SoftBank’s initial bet on Nvidia’s potential in emerging technology.
However, SoftBank has been steadily reducing its holdings over the years. Recently, the company revealed that it sold its entire remaining stake in the AI ​​chip maker for $5.83 billion. This move has investors questioning Nvidia’s future trajectory and whether they should worry.
At the recent AI Summit in Tokyo, Nvidia CEO Jensen Huang shared the stage with SoftBank founder Masayoshi Son, focusing attention on their shared history. Huang joked about Son’s decision to sell SoftBank’s stake in Nvidia in 2019, just before the company’s explosive growth fueled by demand for AI. SoftBank had invested around $700 million for a 4.9% stake, selling it for $3.3 billion, a solid profit at the time. But Huang noted that those shares would now be worth more than $150 billion, given Nvidia’s rising market.
The exchange was light-hearted but moving. Huang joked, “We can cry together,” while hugging Son on stage. Son described the 2019 sale as “exciting,” admitting regret at missing out on Nvidia’s AI-powered rise. Huang even recalled how Son once offered to support Nvidia’s buyout, calling it a “great idea” in retrospect. This joke underscores Nvidia’s transformation from a graphics chip specialist to a linchpin of the AI ​​era, with its GPUs essential for training large language models and data centers.
The timing of Huang’s comments adds irony. The summit focused on AI advancements, where Nvidia’s Blackwell platform and other innovations stole the show. Son, known for his bold technology bets through SoftBank’s Vision Fund, has pivoted heavily toward artificial intelligence startups. However, his previous departure from Nvidia serves as a cautionary tale about timing in high-growth sectors.
Shortly after the summit, SoftBank revealed that it had liquidated its last 32.1 million Nvidia shares in October, netting $5.83 billion. This full exit follows the 2019 liquidation, which marks the end of a once-significant partnership. SoftBank’s Vision Fund was an early backer of Nvidia, building that $4 billion position in 2017 amid growing interest in artificial intelligence and self-driving technology.
Proceeds go toward significant investments, including a $22.5 billion commitment to OpenAI (OPAI.PVT), along with agreements such as the acquisition TISSUEThe robotics unit. SoftBank needs around $30.5 billion for its October-December quarter plans, which also cover $6.5 billion for Amp Computing. This change signals SoftBank’s strategy of monetizing assets for new opportunities in the AI ​​ecosystem.
SoftBank executives were quick to clarify why. Chief Financial Officer Yoshimitsu Goto emphasized that the sale allows for new investments while reinforcing financial stability. A source close to the decision stressed that it “has nothing to do with concerns about AI valuations.” Analysts echo this: morning starDan Baker was quoted by CNBC as saying that SoftBank explicitly stated that it is not a negative opinion on Nvidia as funds flow into other AI games. New street investigationRolf Bulk added context on capital needs for OpenAI and beyond.
In essence, SoftBank insists that the decision is portfolio management, not a sign of doubt about Nvidia’s prospects. Investors should not be alarmed, as SoftBank remains tied to AI companies that often rely on Nvidia technology, such as the $500 billion Stargate data center project.
SoftBank’s complete exit from Nvidia should not influence its investment stance. If anything, the investment bank could be repeating its 2019 mistake: selling too soon amid the AI ​​boom. Nvidia dominates the GPU market and its chips are critical for AI training and inference. Recent advances, such as Blackwell architecture, position it for sustained growth.
As AI adoption accelerates across industries, Nvidia’s valuation could continue to rise. A $10 trillion valuation is not out of the question. Investors should focus on a company’s fundamentals – strong demand, innovation pipeline and market leadership – and not try to keep pace with any investment guru, be it SoftBank or Warren Buffett.
SoftBank’s pivot to OpenAI highlights the vast potential of AI, indirectly validating Nvidia’s role. In a volatile market, these moves are routine and Nvidia’s future trajectory looks solid.
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