Nvidia stock is undervalued because AI companies need to spend another $9 trillion to achieve superintelligence, Softbank CEO says

• The CEO of Softbank says Nvidia banal is undervalued contempt its immense valuation.
• Maysoshi Son predicts AI spending will boost Nvidia's spot business importantly complete nan adjacent decade.
• Son envisions artificial superintelligence by 2035, requiring $9 trillion successful spending.

Even aft Nvidia's ascent to nan second-largest institution successful nan world, Softbank CEO Masayoshi Son says he thinks nan banal is still "undervalued."

Son said in an interview connected Monday that nan ongoing spending trends successful artificial intelligence will only accelerate successful nan years ahead, benefiting Nvidia and its GPU spot business, which has been nan driving unit down astir AI advancements.

"I deliberation Nvidia is undervalued because nan early is overmuch bigger," Son said astatine nan Future Investment Initiative conference.

Son's bullish position connected AI stems from his belief that artificial "superintelligence" will beryllium achieved by 2035.

Whereas artificial wide intelligence is broadly viewed arsenic an AI strategy that is arsenic smart arsenic a human, Son defined artificial superintelligence arsenic an AI strategy that is 10,000 times much powerful than nan quality brain.

Son said that to execute that level of AI, it will require upwards of 200 cardinal GPU chips and $9 trillion successful full capex spending by companies.

According to Son, that could beryllium a bargain erstwhile considering nan immense profits that could beryllium generated from a imaginable artificial superintelligence.

"I opportunity it's still very reasonable capex. $9 trillion is not excessively big, possibly excessively small," Son said.

The famed investor calculated that if artificial superintelligence replaces conscionable 5% of GDP successful 10 years, it has nan imaginable to present arsenic overmuch arsenic $4 trillion successful profits annually.

Softbank has sharpened its attraction connected investing successful AI companies, precocious contributing $500 cardinal to OpenAI's backing round.

The Japan-based finance institution besides owns astir 90% of Arm Holdings, which is readying to motorboat its ain AI chips adjacent year.

Son's bullishness connected AI and Nvidia intends he besides has immoderate regrets. Softbank antecedently owned a 4.9% liking successful Nvidia, but sold it successful 2019 for astir $4 billion. That liking would beryllium worthy much than $160 cardinal today.

"I had to tearfully waste nan shares," Son said earlier this year, calling Nvidia "the food that sewage away."