SoftBank’s CEO said Nvidia stock is undervalued despite its huge valuation. Meiso Son predicts that AI spending will significantly boost Nvidia’s chip business over the next decade. Son envisions artificial superintelligence becoming a reality by 2035, requiring $9 trillion in spending.
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Even after Nvidia rose to become the world’s second-largest company, SoftBank CEO Masayoshi Son said he still believes the stock is “undervalued.”
In an interview Monday, Son said the ongoing artificial intelligence spending trend will accelerate even more in the coming years, benefiting Nvidia and its GPU chip business, which is powering most AI advances. said.
“I think Nvidia is undervalued because the future is much bigger,” Son said at the Future Investment Initiative conference.
Son’s bullish view on AI stems from his belief that artificial “superintelligence” will be achieved by 2035.
While general artificial intelligence is widely regarded as an AI system that is as smart as humans, Son defined super-artificial intelligence as an AI system that is 10,000 times more powerful than the human brain.
Son said achieving that level of AI will require more than 200 million GPU chips and a total capital investment of $9 trillion for companies.
Son says it could be a bargain considering the huge profits that could be generated from potential artificial superintelligence.
“I still think it’s a very reasonable capital investment. $9 trillion is not too big, but it may be too small,” Son said.
The famous investor estimated that if artificial superintelligence replaced just 5% of GDP over 10 years, it could generate as much as $4 trillion in annual profits.
SoftBank has focused on investing in AI companies, recently contributing $500 million to OpenAI’s funding round.
The Japan-based investment firm also owns about 90% of Arm Holdings, which plans to launch its own AI chip next year.
Son’s bullishness on AI and Nvidia means he has some regrets, too. SoftBank previously held a 4.9% stake in Nvidia, which it sold in 2019 for about $4 billion. That stock would now be worth more than $160 billion.
Earlier this year, Son said, “I had to sell my stocks at a loss,” and called Nvidia a “fish that got away.”
