Masayoshi Son, the founder of Japanese conglomerate SoftBank (SFTBF), said that he only sold the company’s Nvidia (NVDA) shares because he needed cash for new artificial intelligence projects, not because he lost confidence in the chipmaker. Speaking at an event in Tokyo, Son explained that SoftBank had to raise money to fund major AI investments, including data center construction and a larger stake in OpenAI (PC:OPAIQ). He said that he “didn’t want to sell a single share” of Nvidia and was even “crying” over the decision, but the company needed the funds to move forward.
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Son also pushed back strongly against the idea that AI investing is becoming a bubble. He said that the people who are making those claims “are not smart enough” and argued that if AI eventually produces 10% of global GDP, it will easily justify the trillions of dollars being spent today. Notably, SoftBank has been expanding its AI strategy through several big projects, such as building the Stargate data center with Hon Hai Precision Industry (HNHPF), buying U.S. chip designer Ampere Computing, and planning additional OpenAI investments by year-end.
His comments came at a Tokyo forum linked to one of Saudi Arabia’s largest investment summits, which highlighted the growing financial ties between Japan and Saudi Arabia. Interestingly, SoftBank’s first Vision Fund was backed by $45 billion from the kingdom’s Public Investment Fund (PIF). At the same event, PIF Governor Yasir Al-Rumayyan said that the fund has invested about $11.5 billion in Japan since 2017 and expects that total to grow to around $27 billion by 2030.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 39 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $257.72 per share implies 43.3% upside potential.
