Regret Missing Out On Nvidia Rally? You're Not Alone, As SoftBank's Masayoshi Son Laments $157B Lost Opportunity: 'The Fish That Got Away'

In a recent shareholder meeting, Masayoshi Son, the founder of SoftBank Group SFTBF SFTBY, expressed regret over the decision to sell the company’s stake in NVIDIA Corp NVDA. This move resulted in SoftBank missing out on a potential $157 billion windfall, based on the current share price of the semiconductor designer.

What Happened: Son admitted to the regrettable sale of Nvidia shares in 2019 at the annual shareholder meeting in Tokyo on Friday, reported The Wall Street Journal. The decision was made to secure returns for SoftBank’s Vision Fund investment vehicle.

“The fish that got away was big,” Son lamented.

At the time of the sale, SoftBank’s Vision Fund held a 4.9% stake in Nvidia. The sale yielded a $3.3 billion return on the initial $700 million investment. However, Nvidia’s subsequent rise, driven by the demand for its AI chips, saw the company briefly become the world’s most valuable listed firm.

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As of Thursday, Nvidia’s market value was approximately $3.22 trillion, just behind Microsoft’s $3.31 trillion. If SoftBank had retained its Nvidia stake, it would be worth around $160 billion today, representing a missed opportunity of nearly $157 billion.

Son also revealed that he had considered making Nvidia part of his technology conglomerate. In 2016, after SoftBank acquired U.K. chip designer Arm, Son discussed a potential acquisition with Nvidia CEO Jensen Huang. However, the deal did not materialize.

Why It Matters: Son’s regret over the Nvidia sale comes at a time when SoftBank is undergoing significant changes. The company is pivoting from venture capital to investments in semiconductors and AI. This shift is part of Son’s strategy to revitalize SoftBank’s investment portfolio.

However, this strategy has not been without challenges. Son mentioned that he had considered investing in OpenAI, the creator of AI chatbot ChatGPT, but OpenAI co-founder Sam Altman opted for an investment from Microsoft instead.

Nvidia’s stock has surged over 1,000% since October 2022, making it the second-largest listed company in the world by market capitalization. This rally has left investors debating the sustainability of Nvidia’s growth, given its dominance in AI chip production.

Price Action: Nvidia closed 3.54% lower at $130.78 on Thursday while it was at $129.23 in premarket trading, according to Benzinga Pro.

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Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote