SoftBank Group's $5.8 billion sale of its Nvidia stake jolted stock markets on Tuesday, stoking fears that the frenzy around artificial intelligence may have peaked, especially after recent warnings from Wall Street bank chiefs and a famed short seller.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares traded almost 2% lower before Tuesday's opening bell after it was revealed SoftBank sold its entire stake in the chipmaker for $5.83 billion. The Japanese conglomerate disclosed in its earnings statement that it sold 32.1 million Nvidia shares in October, alongside the sale of part of its stake in T-Mobile for $9.17 billion.
The stock market rebounded after the Senate approved a deal to end the government shutdown. Paramount Skydance announced more plans to cut costs, lay off staff and increase streaming prices.
The Trump administration proposes 50-year mortgages to lower monthly payments, but risks higher interest costs and slower equity growth for homebuyers. SoftBank (OTCPK:SFTBY) sold its entire Nvidia (NVDA) stake for $5.8B, but remains exposed to AI through holdings in ARM and TSM.
SoftBank Group , owned by the richest man in Japan, Masayoshi Son, revealed on Tuesday it had sold its entire stake in Nvidia last month — for an even bigger bet on artificial intelligence.
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