Japanese tech giant SoftBank has reportedly taken a big stake in one of the hottest US tech stocks.
SoftBank bought up $4 billion worth of shares in Santa Clara, California-based chipmaker Nvidia, Bloomberg reported Tuesday, citing people familiar with the situation. That amount would make the company Nvidia’s fourth largest shareholder, with 4.9 percent of the company.
Nvidia has gotten tons of attention from Wall Street over its chips for artificial intelligence, self-driving cars and gaming. Its stock tripled in value last year and continues to rise in 2017. In fact, shares have traded up so much that analysts covering the stock are struggling to explain Nvidia’s run-up and wonder how long it can last.
SoftBank is expected to make many more investments into tech companies soon, after it set up a $100 billion Vision Fund. US companies, such as Nvidia, are expected to be a big focus of the new fund, after SoftBank founder Masayoshi Son pledged to create 50,000 new jobs by investing $50 billion into US tech startups and companies.
Representatives from SoftBank didn’t immediately respond to a request for comment. An Nvidia spokesman declined to comment.