Softbank Group Corp (ASX: SFTBY) is continuing to reshape its artificial intelligence investment portfolio.
A recent 13F filing with the U.S. Securities and Exchange Commission reveals that the company significantly reduced its holdings in Taiwan Semiconductor Manufacturing (ASX: TSM) American depositary receipts during the second quarter of fiscal 2026, ending June 30. The sale, representing a reduction of more than 70%, generated approximately $270 million. Simultaneously, Softbank initiated a new position in U.S. credit card giant Capital One (ASX: COF) and acquired a small stake in home security app Life360, indicating a continued reallocation of its portfolio toward different AI and technology assets.
It is noteworthy that this is not Softbank's first major adjustment to its core AI holdings. In early 2025, the firm had notably increased its exposure to NVIDIA (ASX: NVDA) and TSMC. By the end of March 2025, its NVIDIA stake was valued at roughly $3 billion, and it had also purchased approximately $330 million in TSMC shares.
However, by October 2025, Softbank had completely divested its NVIDIA position, selling about 32.1 million shares for around $5.8 billion. The proceeds were redirected toward AI investments, including OpenAI. Now, with the substantial reduction of its TSMC holdings, Softbank's direct ownership of core hardware assets within the AI supply chain is clearly contracting.
TSMC Stake Reduced by 71.5% in Q2, New Position in Capital One
According to the latest 13F filing, Softbank's holdings of TSMC ADRs were drastically reduced as of June 30, 2026. The document shows that the company sold approximately 1.4 million TSMC shares during the second quarter, representing a 71.5% reduction from its previous position. The transaction yielded about $269.8 million.
This indicates that the move was not a minor profit-taking exercise but rather a single, decisive reduction of over 70% of the stake. In the same quarter, Softbank established a new position in Capital One, purchasing nearly 277,000 shares valued at approximately $55.5 million at quarter-end. It also bought about 10,700 shares of Life360, valued at roughly $488,500.
From a capital perspective, the proceeds from the TSMC sale far exceed the value of the newly established Capital One position, suggesting the operation is more a significant capital reallocation than a simple sector rotation.
From Boosting NVIDIA to a Full Exit, Then to Drastically Cutting TSMC
Softbank's shifting attitude toward AI hardware assets has been developing over time. Reports from August 2025 indicated that by the end of March that year, Softbank had increased its NVIDIA stake from roughly $1 billion in the previous quarter to about $3 billion. It also purchased approximately $330 million in TSMC shares and around $170 million in Oracle stock.
At that time, the portfolio changes were seen as a strong bet by founder Masayoshi Son on AI infrastructure: NVIDIA representing AI computing chips, TSMC as a leading-edge wafer manufacturer, and Oracle benefiting from AI data center and cloud computing demand. This meant Softbank was not only betting on AI applications but also directly on the chips and infrastructure needed to support AI expansion.
Just a few months later, Softbank's strategy underwent a major shift. In November 2025, the company disclosed that it had sold all 32.1 million NVIDIA shares in October, generating around $5.8 billion. Softbank emphasized that the sale was not a reflection of its view on NVIDIA itself, but rather a move to reallocate capital and increase investment in AI, particularly for projects like OpenAI.
Therefore, Softbank's actions cannot be simply interpreted as a bearish stance on AI. On the contrary, the shift appears to be a transition from directly holding leading AI hardware stocks to gradually focusing on AI platforms, models, and infrastructure projects.
From 'Buying Chips' to 'Betting on the AI Ecosystem'
When Softbank exited NVIDIA, a key question arose: if the company remains bullish on AI, why sell its most central hardware stock? The answer likely lies in its capital needs and shifting investment focus. Softbank has already identified OpenAI as a core investment target and continues to raise substantial funds for related investments. The $5.8 billion from the 2025 NVIDIA sale was a key source of capital for further AI investments.
Simultaneously, Softbank is making ongoing investments in robotics, autonomous driving, and 'physical AI.' This suggests its AI strategy has expanded from simply holding shares in chip companies to covering a broader range of the industry chain, including AI models, data centers, robotics, and AI applications.
From this perspective, the significant reduction in TSMC holdings does not necessarily mean Softbank has suddenly turned bearish on the semiconductor sector. A more likely explanation is that, amid rapidly rising valuations of AI assets and increasing capital needs, Masayoshi Son is actively freeing up liquidity from mature, listed AI hardware stocks to fund more strategically important, but also higher-risk, AI projects.
Notably, Softbank has previously demonstrated it is not inclined to hold onto leading AI stocks indefinitely. It significantly increased its NVIDIA stake in 2025, only to exit entirely in October of the same year. Now, TSMC has also seen a single reduction of over 70%. This indicates that Softbank's AI investment logic is shifting from 'holding AI winners' to 'betting on larger capital expenditure and platform opportunities within the AI ecosystem.'
For the market, the signal from the latest 13F filing is not simply that Softbank is bearish on TSMC. Instead, it represents another large-scale reconfiguration of its AI portfolio by Son: leading AI hardware positions are being reduced, and capital is being concentrated into assets like OpenAI, which he believes will represent the next wave of AI development.
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