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| SoftBank CEO Masayoshi Son during investor presentation |
SoftBank's Stunning $5.8 Billion Nvidia Exit Sends Shares Plunging 10% as Masayoshi Son Pivots Billions Into OpenAI Bet
In a breathtaking financial maneuver that has sent shockwaves through global markets, Japanese investment titan SoftBank Group saw its shares collapse by as much as 10% in Wednesday's trading session following the revelation that the company has liquidated its entire stake in chip powerhouse Nvidia—a monumental $5.83 billion transaction** that represents one of the most significant portfolio shifts in recent investment history. The dramatic sell-off, which involved **32.1 million Nvidia shares** sold throughout October, comes as SoftBank's visionary founder Masayoshi Son executes what appears to be a fundamental strategic pivot away from semiconductor investments toward artificial intelligence pure-plays, with insider sources confirming to CNBC that the proceeds are being strategically redirected to fund SoftBank's massive **$22.5 billion investment in ChatGPT creator OpenAI. This controversial move has divided market analysts, with some viewing it as a premature exit from one of the AI revolution's most essential enablers while others see it as a bold doubling-down on the application layer of artificial intelligence where SoftBank believes the most explosive growth will occur.
The decision marks SoftBank's second major departure from Nvidia ownership, echoing its Vision Fund's complete divestment in January 2019 after initially building a $4 billion position in 2017—a history that suggests Son's investment philosophy regarding the chip manufacturer has consistently prioritized timely profit-taking over long-term holding despite Nvidia's extraordinary performance throughout the AI boom. During an investor presentation that attempted to calm nervous shareholders, SoftBank Chief Financial Officer Yoshimitsu Goto defended the strategic repositioning by stating, "We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength," a comment that underscores the delicate balancing act SoftBank faces as it navigates one of the most challenging investment landscapes in recent memory. The market's reaction was swift and punishing, with SoftBank shares settling more than 6% lower by midday while the broader chip sector experienced collateral damage—Advantest and Tokyo Electron both slipping over 2% and TSMC declining 0.34%—as investors grappled with the implications of one of the world's most influential tech investors substantially reducing exposure to the semiconductor industry that powers the AI revolution.
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Despite this significant divestment, SoftBank remains deeply entrenched in the semiconductor ecosystem through its controlling stake in Arm Holdings, the British chip design firm whose architecture underpins virtually all mobile processors and increasingly powers AI accelerators, with the two companies actively co-developing products that bridge the hardware-software divide. Prominent Wedbush Securities analyst Dan Ives offered a surprisingly optimistic interpretation of the move, suggesting that "This is a bullish signal on the theme from SoftBank doubling down and not a bearish sign in our view," indicating that sophisticated market observers understand SoftBank isn't abandoning AI but rather reallocating within the ecosystem to maximize returns. As SoftBank continues to navigate the complex interplay between hardware infrastructure and software applications in the AI value chain, this massive portfolio reallocation signals Masayoshi Son's unwavering belief that the most transformative value creation in the coming years will occur at the application layer—even if that means saying goodbye to one of the most successful investments in modern market history.
Source: SoftBank Earnings Report, CNBC Insider Information, Market Trading Data
Disclaimer: This article is based on publicly available financial disclosures and market data. Investment decisions should be made after consulting with qualified financial advisors.