SoftBank unloads entire stake in Nvidia for $5.8B

[Softbank Announces June 20 Commercial Launch Of Pepper Humanoid]
Koki Nagahama

SoftBank (OTCPK:SFTBY [https://seekingalpha.com/symbol/SFTBY]) (OTCPK:SFTBF [https://seekingalpha.com/symbol/SFTBF]) said Tuesday it has sold its entire stake in U.S. chipmaker Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), unloading 32.1M shares in October for $5.83B.

SoftBank’s Vision Fund was an early Nvidia backer, building a roughly $4B stake in 2017 before fully exiting the position in January 2019.

Despite the latest sale, SoftBank remains deeply exposed to the AI boom through its portfolio and infrastructure bets, including ventures that depend on Nvidia’s chips such as the planned $500B Stargate data-center project in the U.S.

The Japanese technology company also holds stakes in Arm Holdings (ARM [https://seekingalpha.com/symbol/ARM]) and Taiwan Semiconductor Manufacturing Co. (TSM [https://seekingalpha.com/symbol/TSM]), both beneficiaries of the global surge in AI-related chip demand. The company’s shares, which have doubled over the past year, gained nearly 2% on Tuesday following its fiscal second quarter results [https://seekingalpha.com/news/4519831-softbank-group-gaap-eps-of-203955-revenue-of-373684b].

Gains from investments in OpenAI (OPENAI [https://seekingalpha.com/symbol/OPENAI]) and PayPay fueled a $19B profit for SoftBank’s Vision Fund in the fiscal second quarter. The company also disclosed a $9.17B sale of part of its T-Mobile (TMUS [https://seekingalpha.com/symbol/TMUS]) holding.

Source: Press Release [https://seekingalpha.com/pr/20301731-japans-softbank-says-it-has-sold-its-shares-in-nvidia-for-5_8-billion]

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