Softbank Group Corp has quietly amassed a US$4 billion stake in Nvidia Corp, making it the fourth-largest shareholder in the graphics chipmaker, according to people familiar with the situation.
The Japanese company, which just closed its Vision Fund, disclosed it owned an unspecified amount of Nvidia stock when it announced US$93 billion of commitments to the technology investment fund on Saturday last week.
A holding of 4.9 percent, just less than the amount that would require a regulatory disclosure in the US, would be worth about US$4 billion.
A stake in Nvidia fits with Softbank founder Masayoshi Son’s plans to become the biggest investor in technology over the next decade, with bets on emerging trends such as artificial intelligence.
Under its founder, Huang Jen-hsun (黃仁勳), Nvidia has become one of the leaders of the charge by chipmakers to provide the underpinnings of machine intelligence in everything from data centers to automobiles.
Softbank spokesman Matthew Nicholson declined to comment.
In announcing the Vision Fund’s capital commitments, Softbank said the fund would have the right to acquire several investments, including its Nvidia stake.
Softbank shares reversed losses and closed mostly unchanged on the news. Nvidia shares rose as much as 5.5 percent in Germany to an intraday record high.
Depending on when the shares were acquired, Son might have made a savvy wager. Nvidia’s stock last year tripled and is up 28 percent this year, giving the company a market value of more than US$80 billion.
Its worst annual gain since it started rallying in 2013 was a 25 percent run up achieved in 2014.
Nvidia, which is the biggest maker of graphics chips used by computer gamers, earlier this month countered concern among analysts that its share price appreciation had outrun its ability to grow profit by reporting earnings that beat estimates and forecasting a further improvement.
The results showed that gains are being driven by progress expanding into new markets, such as automotive and data centers.
Son set up the planned US$100 billion Vision Fund so he can pursue even more ambitious deals than he has been able to do on his own. He has invested in start-ups in China, India and the US, and acquired control of larger companies such as British chipmaker ARM Holdings PLC and US wireless operator Sprint Corp.
Softbank last month invested US$5 billion into Chinese ride-hailing giant Didi Chuxing (滴滴出行) in the largest-ever venture fundraising.
This month, the Japanese company put US$1.4 billion into digital payments start-up Paytm, the largest funding round from a single investor in India’s technology sector.
Son has made the US a particular focus after meeting with US President Donald Trump in December last year and pledging to create 50,000 new jobs by investing US$50 billion in start-ups and new companies.
That month, Softbank contributed US$1 billion to a funding round in OneWeb Ltd, a satellite start-up based in Exploration Park, Florida, near the John F. Kennedy Space Center.
In March, Softbank invested US$300 million in WeWork Cos, a US start-up that rents out office space and desks to small businesses and freelancers.
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