SoftBank Group shares tumbled 10% on Wednesday in early Tokyo trading after the Japanese conglomerate announced it had sold its entire $5.83 billion stake in U.S. chipmaker Nvidia. The stock hit a one-month low, despite SoftBank reporting stronger-than-expected quarterly results and a 4:1 stock split.

Nvidia Performance:
Following the news, Nvidia shares settled down nearly 3% at $193.16 on NASDAQ.

SoftBank’s Stake History:
SoftBank had previously exited its Nvidia holdings in 2019 but began rebuilding small positions in 2020, two years before the launch of ChatGPT triggered a massive rally. By March 2025, SoftBank had increased its stake in Nvidia to about $3 billion, benefiting from Nvidia’s market value surge of over $2 trillion since then.

The gains, combined with SoftBank’s investment in OpenAI, significantly boosted earnings. The company reported a surprise net profit of ¥2.5 trillion ($16.2 billion) for Q2, far exceeding analysts’ estimate of ¥418.2 billion. OpenAI’s valuation has increased by $14.6 billion since SoftBank’s investment.

SoftBank’s Statement:
“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” said Yoshimitsu Goto, SoftBank CFO, during an investor presentation.

Continued Ties with Nvidia:
Despite the divestment, SoftBank continues to maintain close business ties with Nvidia through its wider portfolio and partnerships.

Regional Tech Stocks:
Other tech stocks in the region also fell:

• Advantest and Tokyo Electron: down over 2% each
• Taiwan’s TSMC: down 0.34%
• South Korea’s SK Hynix: down 1.62%

Disclaimer: This information is for educational purposes only. Investors should consult certified experts before making any financial decisions.