- SoftBank sold all of its 32.1 million shares of Nvidia for $5.83 billion
- The sale funded a $22.5 billion investment in OpenAI and AI tools.
- Stake sales were part of SoftBank’s broader “asset monetization” strategy
SoftBank’s decision to sell all of its Nvidia shares has caught the attention of investors already wary of overheating AI valuations.
The Japanese conglomerate sold all of its 32.1 million shares for about $5.83 billion, ending a position that dates back to Nvidia’s early rise as the chip industry’s leading AI supplier.
Nvidia shares fell about 2% after the sale, although analysts say the move may have less to do with doubts about Nvidia than with SoftBank’s urgent need for cash.
A strategic decision – or something more?
Rolf Bulk, an analyst at New Street Research, noted that the sale “should not be seen” as a lack of confidence in Nvidia but rather as a practical decision.
SoftBank reportedly needs at least $30.5 billion for new investments in the final quarter of the year, with $22.5 billion allocated to OpenAI and another $6.5 billion to Ampere.
The total represents more investment in one quarter than in the previous two years combined.
“We want to provide ample investment opportunities for investors, while maintaining our financial strength,” SoftBank Chief Financial Officer Yoshimitsu Goto said during a presentation to investors.
“So, with these options and tools, we make sure that we are ready to receive funding in a very secure way. »
The company added that the stake sales were part of its broader “asset monetization” strategy.
This suggests a strategic shift towards broader artificial intelligence projects rather than an exit from the AI space itself.
Former Intel CEO Pat Gelsinger has warned that the AI sector is in a bubble, although he expects any correction to happen gradually.
Additionally, recent financial disclosures show that Michael Burry’s Scion Asset Management has opened large options positions related to Nvidia and Palantir.
The notional value of these positions exceeds $1 billion, signaling an apparent bet on downside risk amid AI’s current rally.
But SoftBank also sold part of its stake in T-Mobile for $9.17 billion and raised funds through a margin loan on its ARM Holdings stock.
Insiders say these asset sales are simply “cash sources” for further acquisitions, including ABB’s robotics business.
Those sales and SoftBank’s $19 billion gain this quarter from the Vision Fund bolstered its growing portfolio of AI-focused stocks.
“The reason we were able to achieve this result is because of September last year, which was the first time we invested in OpenAI,” SoftBank’s Goto said.
SoftBank remains deeply tied to Nvidia through projects such as the $500 billion Stargate data center initiative, which still relies on Nvidia’s GPUs and AI tools.
By CNBC
Follow TechRadar on Google News And add us as your favorite source to get our news, reviews and expert opinions in your feeds. Make sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp Also.
