SoftBank’s $5.8 Billion Sale of NVIDIA Shares Fuels Renewed AI Bubble Concerns

Japanese tech investor SoftBank Group sold its entire 32.1 million-share holding in NVIDIA Corporation, generating approximately US$5.8 billion in October. The move, intended to support expansion of SoftBank’s AI ambitions—including infrastructure deals and investment in OpenAI—sparked investor jitters and reignited talk of a tech-driven speculative bubble, particularly around artificial-intelligence stocks.

While SoftBank said the sale was aimed at freeing capital for its “Vision Fund” AI push, the timing of the exit raised alarm among analysts who noted that the company sold near NVIDIA’s peak after a more than 1,200 % rally in three years. The divestment contributed to a more than 2 % drop in NVIDIA shares and weighed on broader tech-heavy indexes.

Analysis / Impact:
SoftBank’s decision highlights key challenges in the AI investment boom. By cashing out at a pivotal moment, the firm may be signaling internal caution—an interpretation that adds fuel to broader warnings about overvaluation in tech. Analysts caution that when a major backer exits such a prominent company, it can create negative sentiment across the sector.

For the AI industry at large, the sale may indicate that even key players believe the current cycle has reached a turning point. With expectations high, companies may face a reckoning if growth slows or compute-hardware costs climb. Meanwhile, SoftBank’s sale underscores that shifting strategy—moving from AI hardware equity toward infrastructure and services—may be the next phase of the tech investment roadmap.