The $4 billion investment in the graphics chipmaker was clearly meant to be secretive, as it fell just under the 5% stake level that requires immediate regulatory disclosure in the United States.
Now that the cat is out of the bag, rumors are circulating that SoftBank is already looking to significantly increase its stake. Bloomberg has some details on the new development:
SoftBank Group Corp., the Japanese company that raised a $93 billion fund for technology investments, is considering boosting its stake in chipmaker Nvidia Corp., people familiar with the matter said.
The firm would raise its holding over time and begin to work more closely with Nvidia, the people said, asking not to be identified because the deliberations are private.
It’s interesting to note that Microsoft Corporation (NASDAQ:MSFT) has a first right of refusal on the purchase of NVDA shares, should any firm attempt to take a 30% or greater stake. There’s no indication yet that SoftBank wants to get that deep into an ownership position, however. SoftBank is currently the fourth-largest NVIDIA shareholder.
NVIDIA Corporation shares closed at $141.84 on Friday, up $3.58 (+2.59%). Year-to-date, NVDA has gained 33.19%, versus a 8.60% rise in the benchmark S&P 500 index during the same period.