SoftBank Offloads Nvidia Shares as AI Valuations Come Under Scrutiny

SoftBank has divested its entire Nvidia holding worth $5.8 billion, redirecting funds into OpenAI amid growing scrutiny of overheated AI valuations. The move underscores the Japanese investor’s bet that the next wave of profits will come from generative-AI leaders rather than chipmakers.
Quarterly results showed SoftBank’s net profit more than doubled to 2.5 trillion yen, boosted by rising valuations tied to OpenAI. The sale follows months of speculation that the company was preparing a financial war chest for its next major push.
According to CFO Yoshimitsu Goto, the divestment was driven by capital-allocation needs rather than doubts about Nvidia. “We did not sell because of Nvidia itself,” he said, noting the company must free resources to meet its $30 billion AI commitments.
Nvidia’s shares dropped 3.5% after the announcement, triggering a broader dip in tech indices as investors questioned whether the AI rally had hit its peak.