SoftBank has $4bn stake in Nvidia

SOFTBANK Group has quietly amassed a $4 billion (R52.73bn) stake in Nvidia Corporation, 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 $93bn of commitments to the technology investment fund on Saturday. A holding of 4.9 percent, just under the amount that would require a regulatory disclosure in the US, would be worth about $4bn.

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, Jen-Hsun Huang, Nvidia has become one of the leaders of the charge by chipmakers to provide the underpinnings of machine intelligence in everything from data centres to motorcars.

SoftBank spokesperson Matthew Nicholson declined to comment. In announcing the Vision Fund’s capital commitments, SoftBank said the fund will have the right to acquire several investments, including its Nvidia stake. SoftBank shares reversed losses and closed mostly unchanged on the news.

Depending on when the shares were acquired, Son may have made a savvy wager. Nvidia’s stock tripled last year and is up 28 percent again this year, giving it a market value of more than $80bn. Its worst annual gain since it started rallying in 2013, was the 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. – Bloomberg