SoftBank founder and CEO Masayoshi Son said he “was crying” after selling SoftBank’s stake in Nvidia, a decision made before the chipmaker became the world’s most valuable semiconductor company amid the rapid expansion of AI computing. The comment underscores the scale of Nvidia’s market ascent and offers a rare public reflection from one of tech’s most aggressive investors. For global markets — including investors in Israel’s thriving AI and chip-design ecosystem — the episode illustrates how swiftly the sector’s value drivers have shifted.

SoftBank’s Nvidia exit and the opportunity cost

SoftBank acquired a major stake in Nvidia during the late 2010s and later exited at a substantial profit. However, Nvidia’s valuation has since risen exponentially as demand for AI accelerators, data-center GPUs, and generative AI infrastructure reshaped industry economics. Son acknowledged that the timing of the sale, although financially sound at the moment, ultimately cost SoftBank exposure to one of the most powerful market rallies of the decade.

While SoftBank did benefit from strong returns on the investment, the subsequent surge in Nvidia’s share price has been so dramatic that the divestment stands as one of the conglomerate’s most significant opportunity costs. The sale also occurred during a period when SoftBank shifted resources into its Vision Funds, emphasizing startups rather than established hardware giants — a strategy that has produced mixed performance.

AI ambitions pivot toward Arm and next-generation ventures

Son’s comments come as he repositions SoftBank toward a more concentrated AI future, with a strategic emphasis on Arm, the British chip-architecture company SoftBank still largely owns. Arm’s technology underpins the power-efficient processors used in smartphones, edge devices, and an increasing share of cloud infrastructure. As AI workloads diversify, demand for custom and energy-efficient architectures continues to rise, potentially positioning Arm as a critical enabler of the next AI wave.

For SoftBank, doubling down on Arm signals a shift from short-cycle, venture-heavy bets toward long-horizon infrastructure plays. Son has also outlined ambitions to launch large-scale AI initiatives directly within SoftBank, including projects in robotics and foundation-model compute. Investors are interpreting these moves as a reassertion of SoftBank’s vision-driven strategy — one that seeks to anchor the firm more deeply along the AI value chain following the Nvidia miss.

Market response and implications for investors

Public markets have responded cautiously but constructively to SoftBank’s strategic pivot. Arm’s listing and subsequent valuation trajectory have placed it at the center of global semiconductor discussions. Meanwhile, Son’s high-profile acknowledgment of regret over Nvidia serves as a reminder of how quickly leadership positions can shift in emerging technologies.

For Israeli investors — particularly those involved in semiconductor design, AI cloud infrastructure, and venture-backed deep-tech firms — the narrative reinforces how critical timing, conviction, and structural positioning are in fast-moving technology markets. Nvidia’s historic rise has reshaped supply chains, capital expenditures, and competitive dynamics in sectors ranging from autonomous systems to cybersecurity, areas where Israel maintains significant strength.

Looking ahead, analysts expect SoftBank to accelerate its AI strategy through Arm partnerships, new investments, and potentially acquisitions in hardware and compute infrastructure. The key questions for markets include how aggressively SoftBank deploys capital, whether Arm can capture a larger share of AI-related architectures, and how Son positions the firm amid intensifying competition from U.S., Chinese, and European AI stakeholders. SoftBank may no longer hold Nvidia shares, but its next moves will determine how deeply it participates in the AI era it helped anticipate.