SoftBank Group Corp is ramping up its investments in Nvidia and Taiwan Semiconductor Manufacturing Co (TSMC) as part of founder Masayoshi Son's strategy to enhance its position within the artificial intelligence (AI) value chain.

The company's past decision to sell a 4.9% stake in Nvidia in early 2019 is now viewed as a significant missed opportunity, as that stake would be valued at over $200 billion today.

As of the end of the first quarter of 2025, SoftBank has tripled its stake in Nvidia to approximately $3 billion, reflecting its renewed commitment to the AI sector.

Despite strong growth prospects, SoftBank's stock is trading at a 40% discount to its net asset value, partly due to ongoing regulatory challenges surrounding its acquisition plans.

The fund's financial strategy carries risks, highlighted by a loss of £526 billion in the fourth quarter of 2024 and a looming $40 billion investment in OpenAI, showcasing the potential for both high rewards and significant risks.

Historically, SoftBank's Vision Fund has faced challenges, including setbacks with investments like WeWork, but the current AI boom presents a significant opportunity for recovery and growth.

In the first half of 2025, the Vision Fund has monetized nearly $2 billion in assets, indicating active management of investments and a strategic rebalancing towards high-value technology assets.

Son is actively engaging with U.S. officials to navigate potential regulatory challenges, particularly regarding the acquisition of Ampere, amidst rising geopolitical tensions surrounding AI and semiconductors.

For investors, TSMC and Nvidia are considered core holdings in the AI semiconductor boom, while SoftBank's Vision Fund 2 is viewed as a more speculative investment opportunity requiring careful monitoring.

Son's ambitious vision for AI anticipates that the technology will become exponentially smarter, necessitating vast resources for data centers and capital investment, estimated at $9 trillion for the future of superintelligence.

Nvidia has reported significant growth in the third quarter of 2025, achieving $35.1 billion in revenue and a 112% year-over-year increase in Data Center segment sales, driven by partnerships with major companies like Microsoft, Meta, and Toyota.