Masayoshi Son, the founder of holding company SoftBank Group (OTC:SFTBF), is looking to set up a new $100 billion project that will focus on AI semiconductors, according to Bloomberg.
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The venture, dubbed Izanagi, is aimed at competing with chip giant NVIDIA (NASDAQ:NVDA) and complementing Arm Holdings (NASDAQ:ARM), in which SoftBank is a majority investor. One of the options being considered is SoftBank pouring in $30 billion, with the rest coming from investors in the Middle East.
Reportedly, Son sees AI as an opportunity that will allow Arm to rival the top tech names in the U.S. Notably, SoftBank is sitting on a cash pile of nearly $41 billion amid soaring equity prices.
Still, the company is prone to wild gyrations amid market see-saws. Back in 2022, SoftBank’s market cap had tanked by nearly 59% as the company’s Vision Funds took a beating. At the time, Son had noted that SoftBank was going into defense mode following a record quarterly loss.
What Is the Best Chip Stock to Buy Now?
Over the past year, both NVIDIA and ARM have seen their share prices soar by nearly 240% and 102%, respectively, as Wall Street’s fixation with AI continues. Following this rally, the TipRanks Comparison Tool indicates a potential downside of 21.9% in ARM stock. Mr. Son, though, may beg to differ.
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