SoftBank exits Nvidia with $5.8B profit as AI bets accelerate
SoftBank exits Nvidia with $5.8B profit as AI bets accelerate
Tokyo-based SoftBank sells its Nvidia stake for $5.8B and doubles down on AI, outlining bold OpenAI and Stargate initiatives as profits surge.
SoftBank Group Corp., the Tokyo-based conglomerate led by Masayoshi Son, has sold its entire Nvidia stake for about $5.8 billion, locking in a windfall as it pivots toward bigger AI bets. The sale comes with SoftBank also unloading some of its T-Mobile stake for $9.2 billion, freeing up capital for its next wave of technology investments. In total, 32 million Nvidia shares were sold last month, ending SoftBank’s years-long Nvidia exposure.
The divestment helped SoftBank post a second-quarter net income of ¥2.5 trillion ($16.2 billion), far above analyst expectations of about ¥418.2 billion. The strong quarter, paired with Nvidia-related gains and a string of AI-related holdings, has boosted SoftBank's stock performance—up about 78% in the three months through September, its best run since 2005.
As part of a broader move to broaden investor participation, SoftBank announced a 4-for-1 stock split effective January 1, a step the group says will widen access to its growth story.
Son’s next big bets are squarely in AI. SoftBank is planning roughly $30 billion in a commitment to OpenAI, about $20 billion for an AI data-center initiative dubbed Stargate, and discussions with Taiwan Semiconductor Manufacturing Co. (TSMC) to participate in a potential $1 trillion AI manufacturing hub in Arizona. The group has also explored acquiring Marvell Technology and plans to spend about $6.5 billion to acquire Ampere Computing, illustrating a relentless push to build a global AI ecosystem around the Vision Fund and its OpenAI and Oracle stakes.
Analysts remain cautiously optimistic. Citi has lifted its target price for SoftBank shares to about ¥27,100, reflecting the rising value of OpenAI and the AI market’s growth potential. But observers caution that financing these ventures and managing exposure to soaring AI-related bets will be a defining challenge for the Tokyo-based company in the quarters ahead.
With SoftBank at the center of the AI narrative, investors will be watching how the company's cash flow and strategic partnerships translate into real deployments—data centers, chip manufacturing links, and software platforms—across a rapidly expanding AI landscape.
Cover image source: SoftBank exits Nvidia with $5.8 bn profit as Masayoshi Son doubles down on AI investments 🔗
