SoftBank triples Nvidia stake to $3B and boosts TSMC holding amid AI push

SoftBank Group Corp. has significantly increased its exposure to artificial intelligence (hardware) providers, raising its stake in Nvidia Corp. to approximately $3 billion by the end of March, up from $1 billion in the previous quarter [1]. In parallel, the Japanese conglomerate also acquired TSMC shares valued at around $330 million [2], reinforcing its growing interest in semiconductor supply chains critical to the AI industry. These moves are part of a broader strategic realignment under CEO Masayoshi Son, who has emphasized the central role of AI in driving the next wave of technological and economic transformation.

The investments highlight SoftBank’s recognition of the pivotal role played by semiconductor firms in enabling large-scale AI deployment. With Nvidia’s market value surging nearly 90% since April, and TSMC shares rising over 40%, the firm appears to be capitalizing on the AI hardware boom [1]. This is especially notable given that SoftBank had previously sold a 4.9% stake in Nvidia in 2019 — a decision that would now cost it over $200 billion in potential gains [1].

In addition to stock purchases, SoftBank is engaging in large-scale infrastructure initiatives to cement its position in the AI ecosystem. The company is reportedly in talks with TSMC and other partners to establish a $1 trillion AI chip manufacturing hub in Arizona [1]. It is also collaborating with OpenAI and Oracle on the Stargate data center project, a $500 billion initiative aimed at building a massive AI computing infrastructure [1]. These efforts reflect SoftBank’s intent to not only invest in AI components but also to shape the broader infrastructure supporting the technology.

The Vision Fund, a core pillar of SoftBank’s investment strategy, has been active in managing its portfolio, having monetized nearly $2 billion in assets during the first half of 2025 [1]. Despite these sales, SoftBank has shown no urgency to accelerate asset divestitures, suggesting continued focus on long-term value creation. The company raised $4.8 billion in June by selling part of its stake in T-Mobile, providing further liquidity to fund its AI ambitions [1].

SoftBank’s AI strategy is increasingly gaining investor attention. The company’s shares have reached record highs, trading at a roughly 40% discount to its net asset value, which includes its dominant stake in Arm Holdings Plc [1]. Despite this undervaluation, SoftBank remains significantly smaller in market capitalization than its key AI investments, such as Nvidia, which is valued at nearly $4.4 trillion [1]. However, this size gap underscores the company’s growth potential in the AI-driven future.

Investors will be closely watching SoftBank’s upcoming earnings report for more clarity on its capital allocation strategy and potential asset sales. Meanwhile, Son has been engaging with U.S. officials, leveraging political connections to navigate regulatory challenges, particularly as the firm’s acquisition of Ampere Computing faces review by the FTC [1]. His strategic approach, combining direct investments, infrastructure development, and policy engagement, is shaping SoftBank’s AI ambitions.

Overall, SoftBank’s increased stakes in Nvidia and TSMC represent a calculated and forward-looking strategy to position itself at the heart of the AI revolution. By combining financial investments with infrastructure development and strategic alliances, the company is building a diversified approach to capturing value in the high-growth AI sector.

References:

[1] https://www.bloomberg.com/news/articles/2025-08-05/softbank-builds-nvidia-tsmc-stakes-under-son-s-focus-on-ai-gear

[2] https://www.japantimes.co.jp/business/2025/08/05/companies/softbank-nvidia-tsmc-stakes/

[3] https://www.mitrade.com/insights/news/live-news/article-3-1012346-20250805