Hua Er Jie Jian Wen·2025-08-05 08:28Core Viewpoint - SoftBank is significantly increasing its investments in AI hardware by boosting its stakes in Nvidia and TSMC, aiming to capture key segments of the AI industry chain [1][6]. Investment Strategy - As of March 2023, SoftBank's holdings in Nvidia rose from $1 billion to approximately $3 billion, with additional investments of about $330 million in TSMC and $170 million in Oracle [1]. - The investments are made at a time when Nvidia's market capitalization surpassed $4 trillion and TSMC approached $1 trillion, resulting in substantial paper gains for SoftBank [1]. - SoftBank's Vision Fund has liquidated nearly $2 billion in public and private assets in the first half of 2025, including exits from companies like DoorDash and Wiz, while increasing stakes in Nvidia, TSMC, and Oracle [6]. Financial Performance - Analysts expect SoftBank to report a positive net profit in its upcoming Q2 financial results, primarily due to strong performance from its AI-related assets [3]. - SoftBank's stock reached an all-time high last month, driven by investor optimism regarding its partnerships and projects in the AI sector [3]. Major Projects - SoftBank is pursuing large-scale partnerships to play a more central role in AI proliferation, including a $500 billion Stargate data center project in collaboration with OpenAI and Oracle [7]. - The company is also lobbying for TSMC's involvement in a $1 trillion AI manufacturing center in Arizona [7]. Acquisition Plans - SoftBank plans to acquire U.S. chip company Ampere Computing for $6.5 billion and is set to invest an additional $30 billion in OpenAI [8]. - The investment strategy centers around Arm Holdings, a key player in chip design, as SoftBank aims to establish a comprehensive portfolio of industry participants [8]. Strategic Shift - This round of investments is seen as a corrective measure for past strategic missteps, as SoftBank had previously sold 4.9% of its Nvidia shares before the rise of generative AI, which would now be worth over $200 billion [9]. - The repurchase of Nvidia shares and investment in TSMC are viewed as opportunities to regain access to the most profitable segments of the semiconductor supply chain [9].