SoftBank's major pivot: goodbye Nvidia, focus on conquering AI with Masayoshi Son

Masayoshi Son’s strategic move continues to surprise. In October, SoftBank completely divested its Nvidia holdings, netting a total of $5.8 billion. This is a significant decision that reflects a change in direction for the Japanese holding, led by the 68-year-old founder who is focusing resources on a more ambitious project: building an ecosystem centered on artificial intelligence.

The profitability of the Vision Fund and growth figures

The divestment from Nvidia comes at a time of great prosperity for SoftBank. In the second quarter of the fiscal year ending in September, the group reported a net profit of 2.5 trillion yen (approximately $16.2 billion), well above analysts’ estimates of 418.2 billion yen. Leading these extraordinary results was primarily the Vision Fund, the company’s investment arm, along with capital gains accumulated in the technology and AI sectors.

This positive moment is also reflected in the market valuation: SoftBank’s stock gained 78% in the three months prior to September, marking the best quarter since the distant fourth quarter of 2005. A performance that rewards Son’s strategic vision in positioning the group on one of the most promising trends of the decade.

Masayoshi Son’s new investment strategy

With the liquidation of Nvidia’s position, Masayoshi Son is redefining the portfolio toward assets more directly involved in AI. The founder now holds strategic stakes in OpenAI and Oracle, two central players in the artificial intelligence revolution. These choices reflect a consistent vision: investing not only in infrastructure providers but also in creators of intelligence and related services.

The financial commitments are substantial. Son is planning a $30 billion investment in OpenAI, in addition to participating in the Stargate data center project. Simultaneously, SoftBank is considering entering the AI production hub in Arizona in partnership with entities like TSMC, with an initial investment of $1 trillion. Previously, the group had also considered acquiring Marvell Technology and later added Ampere Computing LLC to its portfolio with an expenditure of about $6.5 billion.

Expert analysis and market uncertainties

Market analysts view the strategy favorably. Keiichi Yoneshima of Citigroup has raised his estimates for SoftBank, setting a target price of 27,100 yen and linking the valuation model to the potential growth of OpenAI, whose future valuation is estimated between 500 and 1,000 billion dollars.

However, structural doubts remain. The market continues to signal concerns about high valuations of AI startups, massive investments in infrastructure capital, and uncertainty over who will actually benefit from the wave of data center development. According to analyses from platforms like Finimize on Smartkarma, although SoftBank’s price has doubled recently, “the discount at which the holding could be purchased has almost disappeared, transforming it from a market entry opportunity in AI to a valuation more aligned with the market.” This scenario could open windows for investors to realize gains.

Outlook and Masayoshi Son’s role

SoftBank’s decision to proceed with a 4-for-1 stock split starting January 1st signals confidence in future plans. Masayoshi Son remains the main architect of this transformation, aiming to position SoftBank as a key player in the AI ecosystem. The main challenges are twofold: raising sufficient funds for the declared plans (over $26 billion in known commitments) and demonstrating that the strategy will generate returns exceeding the underlying risks.