SoftBank ramps up AI bet with $3b Nvidia stake

SoftBank Group Corp. is deepening its commitment to artificial intelligence by significantly increasing its investments in key chipmakers, including Nvidia Corp. and Taiwan Semiconductor Manufacturing Co. (TSMC). This move highlights CEO Masayoshi Son’s sharpened focus on the hardware driving the AI revolution.

According to regulatory filings, SoftBank raised its stake in Nvidia to around $3 billion by the end of March, up from $1 billion in the previous quarter. It also acquired roughly $330 million in TSMC shares and $170 million in Oracle Corp.

Meanwhile, a person familiar with the matter said that SoftBank’s Vision Fund monetized nearly $2 billion in assets during the first half of 2025. While the Vision Fund continues to prioritize returns, there’s reportedly no pressure from SoftBank to accelerate asset sales. The company declined to comment.

Son rebuilds AI empire around arm to reclaim lost ground in chip race

At the center of SoftBank’s AI strategy is Arm Holdings Plc, the UK-based chip designer with a 90% stake. Son is now crafting a portfolio of key industry players around Arm, aiming to regain ground after missing the historic AI-fueled rally that propelled Nvidia to a $4 trillion valuation and TSMC close to $1 trillion.

“Nvidia is the picks and shovels for the gold rush of AI,” said Ben Narasin, founder of Tenacity Venture Capital. SoftBank’s growing stake in Nvidia may give it greater influence — and potentially faster access — to the chipmaker’s in-demand hardware, he added. “Maybe he gets to skip the line.”

SoftBank is expected to report strong paper gains from its Nvidia bet when it announces earnings on Thursday. Since its April low, Nvidia’s market value has surged nearly 90%, while TSMC shares are up over 40%.

Despite being an early believer in AI, SoftBank sold a 4.9% stake in Nvidia in 2019 — a position that would now be worth more than $200 billion. Massive losses at the Vision Fund also limited its capacity to invest aggressively in generative AI early on.

Son spearheads large-scale initiatives like the $500 billion Stargate data center project with OpenAI, Oracle, and Abu Dhabi’s MGX fund. He’s also in talks with TSMC and others to build a $1 trillion AI chip manufacturing hub in Arizona.

Comgest Asset Management’s Richard Kaye believes Son views himself as the natural provider of AI semiconductor technology, aiming to control the industry’s upstream and downstream segments.

SoftBank rallies investors as Son eyes big AI deals

Investors are buying into Son’s vision. SoftBank’s shares hit a record high last month, buoyed by strong AI exposure and plans for a $6.5 billion acquisition of Ampere Computing LLC and a possible $30 billion investment in OpenAI.

Still, SoftBank trades at a roughly 40% discount to its net asset value, which includes its dominant stake in the $148 billion-valued Arm. Its $119 billion market cap remains a fraction of AI giants like Nvidia.

To navigate regulatory headwinds, Son is leveraging his connections with Donald Trump and is reportedly holding frequent meetings with U.S. officials. This comes as SoftBank’s planned acquisition of Ampere faces an FTC review amid heightened scrutiny of AI and semiconductor deals.

Investors will be watching Thursday’s earnings for clues on which assets SoftBank may divest next to fund its hardware ambitions. The firm raised about $4.8 billion in June by selling part of its T-Mobile stake. CFO Yoshimitsu Goto has cited a net asset value of ¥25.7 trillion ($175 billion), indicating sufficient liquidity for continued expansion.

Over the past year, the Vision Fund exited holdings in DoorDash, View Inc., Wiz, and Peak, while ramping up purchases of Nvidia, TSMC, and Oracle shares.

In June, Son told shareholders that SoftBank is pursuing AI through a broad network of startups and group companies, intending to position itself as the key architect behind the leading platform in the era of artificial super intelligence.

Super Micro battles inventory glut and fierce competition

On other developments, Super Micro Computer Inc. shares plunged 16% in after-hours trading after reducing its revenue forecast for fiscal year 2026.

One of the company’s biggest challenges appears to be its inventory of older products. Demand for current models has slowed as customers await new systems featuring the latest Nvidia chips. CEO Charles Liang admitted that this was weighing on sales.

“Some customers continue to wait for new products,” Liang said during a post-earnings conference call. “We have to wait and see.” He added that Super Micro expects improved availability of Nvidia’s powerful AI chips in the months ahead, which could help boost future sales.

But in the meantime, the company faces mounting pressure to discount older inventory to secure major deals. This strategy, while necessary to stay competitive, further erodes profit margins.

Super Micro’s rivals, particularly Dell Technologies, are employing similar tactics. Earlier this year, Bloomberg reported Dell had also agreed to narrow margins to land a high-profile AI server contract with Elon Musk’s xAI project.

The pricing war underscores the tough environment for server makers aiming to ride the AI wave while maintaining profitability. While demand remains strong, the sheer scale of investment needed — and the low pricing needed to win contracts — makes sustained growth more difficult than it may appear from the outside.

Super Micro’s stock had been on a tear, rising 88% this year amid hopes the company would be a key player in powering the next generation of AI infrastructure. That optimism has now been shaken.

The sharp sell-off on Tuesday reflects investor disappointment and a recalibration of expectations. While the long-term AI opportunity remains vast, Super Micro’s latest results are a reminder that execution, timing, and competitive pricing are just as critical as market hype.