Masayoshi Son's Missed $15 Billion Opportunity: Nvidia Stake Would Have Skyrocketed

Beginning in 2017, the investment story between Nvidia (NASDAQ:NVDA) and SoftBank started when Masayoshi Son, the creator of the growing chipmaker, committed a whopping $4 billion. At the time, Nvidia was attracting interest in its innovative graphics processing units, which provided mission-critical in fields other than gaming, including artificial intelligence (AI) and data centers.

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After SoftBank bought Arm in 2016 for $32 billion, Nvidia's share fit its AI-centric approach. Emphasizing the fast speed of technological development, Son, optimistic about the future of AI, said in 2017 that he thought machines would reach IQs of 10,000 within 80 years.

But in 2019, Nvidia's stock fell, losing over half its value from 2018 highs, which led SoftBank to sell its share, producing a profit of almost $3 billion. Over the past five years, Nvidia's stock has surged 2,600%, since then. If SoftBank kept its initial invent, now it would now be valued over $15 billion. When one looks back, Son's choice emphasizes the volatility and possible long-term benefits in the high-stakes tech investing scene.

This article first appeared on GuruFocus.