Nvidia Slips as SoftBank Exit Sparks Debate Over AI Valuation and Capital Rotation

Nvidia Corporation shares declined following news that SoftBank Group Corp. had completely exited its position in the AI chip leader. The Japanese conglomerate sold its entire stake of 32.1 million shares in October for $5.8 billion, marking a surprising move as the company redirects capital toward founder Masayoshi Son’s ambitious artificial intelligence initiatives.

The sale comes as SoftBank pursues major investments including a planned $30 billion commitment to OpenAI and participation in a $1 trillion AI manufacturing hub in Arizona.

SoftBank Swaps Nvidia Stake For Big AI Investments

SoftBank sold 32.1 million Nvidia shares in October, generating $5.83 billion in proceeds ahead of what the company describes as a “rash of planned investments” to establish its own sphere of influence in the artificial intelligence sector.

The Tokyo-based firm had grown its Nvidia stake to approximately $3 billion by the end of March 2025, making the recent sale a significant windfall that contributed to SoftBank’s surprise fiscal second quarter net income of ¥2.5 trillion ($16.2 billion). This figure far exceeded analyst expectations of ¥418.2 billion and helped drive a 78% surge in SoftBank’s share price over the three months ending in September.

Masayoshi Son, 68, is aggressively capitalizing on booming investment in AI infrastructure despite scaling back other holdings. His ambitious initiatives include the Stargate data center rollout, the planned $30 billion OpenAI investment, and efforts to court Taiwan Semiconductor Manufacturing Co. about participating in a $1 trillion AI manufacturing hub in Arizona.

SoftBank also explored a takeover of US chipmaker Marvell Technology earlier in 2025. The company faces the challenge of balancing financing for these new ventures, including roughly $20 billion for OpenAI and $6.5 billion for the planned acquisition of chip designer Ampere Computing LLC.

Despite divesting from Nvidia directly, SoftBank maintains substantial exposure to the AI boom through its portfolio companies and infrastructure investments. The company holds significant stakes in Arm Holdings and Taiwan Semiconductor Manufacturing Co., both major beneficiaries of surging AI-related chip demand.

SoftBank’s Vision Fund was originally an early Nvidia backer, building a roughly $4 billion stake in 2017 before fully exiting in January 2019, only to re-enter the position that it has now exited again.

Nvidia Dips Slightly But Remains A $4.8 Trillion Giant

Nvidia shares fell 1.1% to a session low of $196.05 at 6:34 AM EST on November 11, 2025, following the SoftBank disclosure. The stock had closed the previous session at $199.05, up $10.90 or 5.79%, reflecting continued investor enthusiasm for the company’s dominant position in AI accelerator chips.

Despite the premarket dip, Nvidia has delivered exceptional returns with year-to-date gains of 48.26%, a one-year return of 34.87%, and remarkable three-year and five-year returns of 1,165.33% and 1,463.49% respectively, vastly outperforming the S&P 500 benchmark.

The company maintains a massive market capitalization of $4.85 trillion as of November 10, 2025, cementing its position as one of the world’s most valuable corporations. Nvidia’s trailing price-to-earnings ratio stands at 56.71, while its forward P/E of 30.30 suggests analysts expect significant earnings growth ahead. The semiconductor giant reported fiscal Q2 2026 revenue of $46.74 billion with earnings of $25.78 billion, demonstrating the company’s exceptional profitability with a profit margin of 52.41%.

Analyst sentiment remains overwhelmingly positive, with 64 strong buy ratings and an average price target of $230.78, suggesting potential upside from current levels. The company’s next earnings date is scheduled for November 19, 2025.

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