1. Nvidia has become the world's second-largest company by market cap; 2. However, Masayoshi Son said he believes Nvidia is still "undervalued"; 3. He believes that "super artificial intelligence" will be achieved by 2035.
Chailease, October 31 (Editor: Bian Chun) Despite the soaring stock price, the leading ai chip company has become the second largest in the global market cap ranking.$NVIDIA (NVDA.US)$However, Son Masayoshi, the legendary figure in the technology investment field and the founder and CEO of SoftBank, believes that Nvidia is still "undervalued".
Recently, Masayoshi Son said in a media interview that the continued trend of spending in the field of artificial intelligence in the coming years will only accelerate, benefiting Nvidia and its GPU chip business, which has been the driving force behind most advances in artificial intelligence.
"I think Nvidia is undervalued because the future of artificial intelligence is much broader." Masayoshi Son said at the Future Investment Initiative summit in Saudi Arabia.
By 2035, "super AI" will be achieved.
The reason why Masayoshi Son is bullish on artificial intelligence is because he believes that "super artificial intelligence" will be achieved by 2035.
Artificial intelligence is widely seen as artificial intelligence systems as smart as humans, while Masayoshi Son defines super artificial intelligence as an artificial intelligence system 10,000 times more powerful than the human brain.
Masayoshi Son said that to achieve this level of artificial intelligence, companies will need over 0.2 billion GPU chips and invest $9 trillion in total capital expenditures.
Masayoshi Son stated that considering the potential huge profits that super artificial intelligence may bring, this could be a profitable trade.
"I think this is still a very reasonable capital expenditure. 9 trillion dollars may not be too much, perhaps too little," he said.
He also mentioned that if super artificial intelligence replaces 5% of the GDP within 10 years, it could bring profits of up to 4 trillion dollars annually.
Increase investment in AI.
Masayoshi Son was once enthusiastic about investing in startups, gaining fame for investing in companies like Alibaba. However, in recent years, he has had setbacks in investment projects like WeWork and Uber, failing to catch the "first train" of the AI boom.
Since the beginning of this year, SoftBank plans to shift its investment focus from traditional venture capital to the semiconductor and artificial intelligence fields. In May of this year, the company announced a $9 billion annual artificial intelligence investment plan.
Recently, SoftBank contributed $0.5 billion to a round of financing for OpenAI. SoftBank also owns about 90% of Arm Holdings, which plans to introduce its own AI chip next year.
Masayoshi Son's bullishness on AI and Nvidia may reveal some regrets in his mind. SoftBank previously held a 4.9% stake in Nvidia but sold these shares in 2019 for approximately $4 billion. At that time, Son thought locking in the return was a wise move, as SoftBank's cost to purchase Nvidia's shares was only $0.7 billion.
If these stocks are not sold, they are now worth over $160 billion. This means that Softbank missed out on over $150 billion in potential gains by prematurely selling Nvidia. Earlier this year, Masayoshi Son regretted selling Nvidia too early, saying that he 'missed a big fish'.
Amid the artificial intelligence investment boom, Nvidia has been advancing steadily over the past two years. Year-to-date, Nvidia's stock price has risen by about 190%. Last Friday, Nvidia briefly surpassed Apple to become the world's most valuable company by market cap.
Editor/ping