US EditionSoftBank shares plunge as much as 10% after selling Nvidia stake
SoftBank sold its entire $5.8 billion Nvidia stake in October to fund a $22.5 billion AI investment in OpenAI and a $500 billion U.S. data-center expansion project.
- On Nov 11, SoftBank Group sold its entire US$5.8 billion stake in Nvidia, revealing it sold all 32.1 million shares in October.
- Masayoshi Son’s AI strategy prompted the divestment to raise capital for the $500 billion Stargate project and up to $40 billion pledged to OpenAI.
- Alongside the Nvidia sale, SoftBank Group trimmed its T‑Mobile position, raising $9.17 billion, while its US depositary receipts rose 7.2% on Nov 11 as Nvidia shares slid 3.9%.
- The sale stoked fears that the AI frenzy may have peaked after warnings from Wall Street bank chiefs and Michael Burry, deepening doubts about valuations.
- The disposal positions SoftBank closer to OpenAI’s future gains and risks as OpenAI’s value rose $14.6 billion since SoftBank invested and it considers a $1 trillion IPO soon.
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Nvidia Stock Lurches Down as SoftBank Pulls Entire Investment
Last month, we shared a story about Seaport Global Securities analyst Jay Goldberg, who defied the odds as the only voice out of 80 Bloomberg stock watchers who rated Nvidia as a “sell.” While Goldberg makes some very good points — mostly, that AI simply isn’t proficient enough, at least yet, to justify its incredible chokehold on the US economy — the consensus on Wall Street has been firmly against him. Case in point, even after Goldberg made h…
SoftBank's stock tumbles 10% following Nvidia sell-off concerns
SoftBank Group Corp. experienced a significant drop in its shares, falling as much as 10% after announcing its exit from Nvidia Corp., a leader in the AI sector. This move has heightened investors' concerns about the overall valuation of tech stocks, already under scrutiny. The market's reaction reflects a growing wariness towards AI investments amidst escalating tech sector valuations. The post SoftBank’s stock tumbles 10% following Nvidia sell…
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