SoftBank Founder Admits Costly Error Involving NVIDIA Resulting in Over 15 Billion Loss for the Company

Byadmin

Jun 22, 2024
SoftBank Founder Admits Costly Error Involving NVIDIA Resulting in Over 15 Billion Loss for the CompanySoftBank Founder Admits Costly Error Involving NVIDIA Resulting in Over 15 Billion Loss for the Company

SoftBank Group founder Masayoshi Son admits to a major financial mistake involving Nvidia. He recalls the decision to sell Nvidia shares in 2019, driven by the SoftBank Vision Fund’s strategy to fix returns. At that time, the fund sold its entire 4.9% stake in Nvidia for $3.3 billion, after initially investing $700 million, a move that appeared profitable at the time.

According to information, if SoftBank had retained its stake in Nvidia, it would now be valued at just under $160 billion, as the market capitalization of the AI chip manufacturer currently stands at around $3.09 trillion.

Read more:

Nvidia has lost its status as the most valuable company – will its stock continue to decline?

Despite this missed opportunity, Son highlights SoftBank’s successes, including a lucrative $20 million investment in Alibaba that generated returns in the tens of billions. Arm, the British chip manufacturer acquired by SoftBank in 2016, also remains a key investment with a market value of $168 billion according to the latest assessment.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *