Masayoshi Son's vision of AI: SoftBank abandons Nvidia to reorient towards new technological horizons

Masayoshi Son keeps surprising the market. While the 68-year-old founder of SoftBank continues to weave his ambitious web in the artificial intelligence sector, the group has made a significant strategic move: the complete sale of its position in Nvidia during October, generating proceeds of approximately $5.8 billion.

A Capital Reallocation Strategy

The decision to divest from Nvidia shares represents an important chapter in Masayoshi Son’s portfolio recalibration. While in March the Tokyo-based group still held an investment valued around $3 billion in the semiconductor company, the exit from the position signals a tactical shift in investment plans. The freed-up capital will be used to fund other initiatives in the AI landscape, where SoftBank is focusing its ambitions to build a dominant influence.

The Numbers That Tell the Success

SoftBank’s latest results paint an impressive picture. In the second quarter of the fiscal year ending in September, the group achieved a net profit of 2.5 trillion yen ( approximately $16.2 billion ), well above analysts’ estimates of 418.2 billion yen. The engine behind this performance? The synergy between gains from positions in OpenAI, Oracle, and the Vision Fund division.

This financial strength translated into a significant appreciation of the stock. In the quarter ending in September, SoftBank shares rose by 78%, the best quarterly result since the end of 2005.

The Expansion of the Tech Empire According to Son

Masayoshi Son’s ambitions go far beyond simple liquidations. The investment program outlines an extraordinary scope. Son is reportedly negotiating with entities such as TSMC to evaluate participation in a data center in Arizona, with a total economic commitment potentially reaching $1 trillion. Simultaneously, a $30 billion investment in OpenAI is planned, while evaluations for acquisitions in the chip sector are underway, including a consideration for the manufacturer Marvell Technology Inc.

The picture is completed with the Stargate project, further evidence of the commitment to consolidate critical positions in the AI sector and technological infrastructure.

SoftBank’s Vision Through the Eyes of Analysts

Keiichi Yoneshima of Citigroup highlighted how the success rate in recovering SoftBank’s investments is progressing. The analyst set a target price of 27,100 yen for the stock, correlating the valuation with OpenAI’s prospects, which could fluctuate between $500 billion and $1 trillion in the future.

The Market Scenario and Emerging Concerns

Despite positive results, the market remains cautious. Concerns revolve around the high valuations of companies in the AI sector, massive capital deployments, and uncertainty over who will actually benefit from the infrastructure being built.

A Finimize research on Smartkarma notes how SoftBank’s investment logic is transforming. If in the past buying SoftBank meant gaining access to Arm shares and exposure to AI at favorable conditions, today the margin of convenience has considerably narrowed. With the doubling of the stock price and the elimination of the discount relative to net asset value, some experts suggest it might be the right time to realize accumulated profits.

Finally, SoftBank announced a 4:1 stock split starting January 1st of next year, a move that could broaden the accessibility of the stock in the market.