SoftBank Has Accumulated $4 Billion of NVIDIA's Stock for 4.9% Stake in Company

That's about $4 billion based on the chip maker's current market valuation.


Sometimes businesses don't need to trumpet and tease what they are doing. Sometimes, they just quietly go about their business until they need to say something. Take SoftBank for instance. The huge Japanese investment company has revealed that it has amassed more than $4 billion in NVIDIA stock for its tech fund. That's a lot of video cards.

The 4.9% stake, which is just below the 5% required to make a report to the U.S. Securities and Exchange Commission, falls in line with SoftBank's goal of being a major tech investor over the next decade, according to BloombergSoftBank founder Masayoshi Son has stated that he wants the company to be a mover and shaker in emerging technologies, such as AI. NVIDIA fits into that mold, almost always on the cutting edge of computer graphics innovation and other tech related advancements. The company just recently launched its new high-end Titan Xp video card for $1,200.

SoftBank also acquired U.K. chip maker ARM Holdings Plc last year for $32 billion. It also bought a 78% controlling stake in mobile carrier Sprint for $22.2 billion in 2012. 

The investment is part of SoftBank's Vision Fund. Depending on when the shares were actually acquired, the fund should have had a huge boost just based on the Nvidia investment alone. Nvidia stock closed at $141.03 yesterday, making it worth about $80 billion. The stock tripled in value last year, and its weakest growth spurt was 25% in 2014 after share prices started to bounce back in 2013.

After jumping about 3% on the news of the SoftBank investment yesterday, shares have pulled back in early trading today, dropping to 137.18 as of 11 a.m. 

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