Shares of SoftBank Group plunged as much as 10% on Wednesday after the Japanese tech conglomerate announced it had sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion. According to sources cited by CNBC, the proceeds from the sale will help finance SoftBank’s $22.5 billion investment in ChatGPT creator OpenAI. By the end of the trading session, SoftBank shares were still down more than 6%, reflecting investor concern over the surprise move.
In its earnings report, SoftBank revealed it sold 32.1 million Nvidia shares in October and also reduced its T-Mobile stake, raising an additional $9.17 billion. SoftBank’s Chief Financial Officer, Yoshimitsu Goto, stated during an investor presentation that the company aims to “provide a lot of investment opportunities for investors while maintaining financial strength.”
While the decision to sell Nvidia shares surprised some investors, it’s not the first time SoftBank has exited its position in the U.S. chipmaker. The company’s Vision Fund was an early Nvidia backer, accumulating a $4 billion stake in 2017 before fully divesting in January 2019. Despite this latest sale, analysts note that SoftBank remains strategically connected to Nvidia through its broader artificial intelligence and semiconductor ventures.
Dan Ives, global head of technology research at Wedbush Securities, described the move as “a bullish signal,” suggesting that SoftBank is “doubling down” on its AI ambitions rather than retreating from the semiconductor market. Similarly, Rolf Bulk, equity research analyst at New Street Research, noted that while OpenAI is central to SoftBank’s Generative AI portfolio, hardware continues to play a vital role—especially through its controlling stake in British chip designer Arm Holdings, whose technologies are essential to both mobile and AI processors.
The news also weighed on other Asian technology stocks. Semiconductor testing equipment maker Advantest and chip production equipment manufacturer Tokyo Electron both fell over 2%, while Taiwan’s TSMC, the world’s largest contract chipmaker, slipped 0.34%, and South Korea’s SK Hynix dropped 1.62%.
SoftBank’s bold reallocation of capital underscores its shifting focus from semiconductor investments toward artificial intelligence innovation, positioning itself at the forefront of the rapidly evolving global AI landscape.