"Softbank, the Japanese tech holding company run by legendary Masayoshi Son, sold 100% of its Nvidia Corp. ( NASDAQ: NVDA) shares, which yielded $5.8 billion. It is speculated that the money will be allocated to other tech investments, which Son may believe yield larger returns. Softbank holds equity positions in several artificial intelligence (AI) companies, led by OpenAI. It is also part of a huge U.S. AI infrastructure play known as Stargate."
"It is impossible to figure out Son's thinking. Worries about Nvidia's future have started to grow. Among the reasons is that its high-end chips are locked out of China as part of a trade war with the United States. China also says it can produce comparable chips. And there are concerns that AI valuations have reached a bubble and the industry is in for a collapse."
SoftBank sold 100% of its Nvidia holdings, raising $5.8 billion that may be redeployed into other technology or AI investments. SoftBank retains equity in several AI firms, including a stake linked to OpenAI, and participates in the U.S. Stargate AI infrastructure initiative valued at $500 billion. Nvidia's shares have surged nearly 1,400% over five years and the company now has a roughly $4.8 trillion market capitalization. Concerns include export restrictions that limit high-end chips to China, China’s chip ambitions, and broader worries about an AI valuation bubble. An estimate suggests SoftBank may be overcommitted financially.
Read at 24/7 Wall St.
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