Nvidia ‘undervalued,’ SoftBank CEO says, as ‘hundreds of billions’ needed for AI

Nvidia (NASDAQ:NVDA) is “undervalued,” SoftBank (OTCPK:SFTBY) Chief Executive Officer Masayoshi Son said on Tuesday, adding that “hundreds of billions of dollars” will be needed to achieve artificial superintelligence.

Nvidia shares fell fractionally in premarket trading, but have gained 191% year-to-date and more than 2,600% over the past five years.

Speaking at the Saudi FII Summit, Son said it could take as much as $9T and 200M chips needed to achieve artificial superintelligence. The 67-year-old Son, who is known for making extraordinary bets and calls, including SoftBank’s $100B Vision Fund, added that he expects AI to be 10,000 times smarter than the human brain by 2035.

He also said he was stockpiling “tens of billions of dollars” in order to make the “next big move.” In February, it was reported that the SoftBank founder was looking for investors to help with a $100B plan to boost the global supply of artificial intelligence-focused processors.

SoftBank is the majority owner of Arm Holdings (ARM), the British semiconductor intellectual property company. SoftBank spun out a portion of Arm in October 2023 in a widely watched initial public offering.

The initiative, known as Project Izanagi, was said to be separate from Son’s plans to work with OpenAI Chief Executive Sam Altman to raise between $5T and $7T to boost the world’s chip-making capacity and its ability to power AI.

Earlier this month, Son said artificial superintelligence is “something that wants you to be happy.” Last October, Son said he thinks general artificial intelligence, sometimes referred to as artificial general intelligence, will top the collective intelligence of humanity and come within the next 10 years.

General AI, or AGI, has been previously described of as the singularity — an event where technology surpasses humanity and becomes irreversible.