By Faizan Farooque
Publication Date: 2025-11-12 15:59:00
This article first appeared on GuruFocus.
SoftBank Group (SFTBY, Financials) shares plummeted as much as 10% on the Tokyo Stock Exchange after the company sold all of its Nvidia stock for $5.83 billion. The sale shows how hard it is to get money when founder Masayoshi Son puts more money into AI.
The Japanese company has promised at least $41 billion to AI projects. This includes a proposed $22.5 billion follow-on investment in OpenAI and a $6.5 billion purchase of chipmaker Ampere. SoftBank is also trying to buy ABB’s robots sector for $5.4 billion and is looking at buying Marvell Technology, a U.S. chipmaker.
Analysts say the shift reflects Son’s intention to consolidate SoftBank’s focus around AI infrastructure and applications, while cutting back on noncore projects. CreditSights analyst Mary Pollock estimated the company’s cash position at about $27.86 billion as of September, warning that SoftBank will need to be proactive in securing additional funding to support its aggressive investment plans.
