SoftBank Says It Sold Its Entire Nvidia Stake. The Chip Stock is Sliding.

Core Insights - SoftBank has completely sold its stake in Nvidia, amounting to 32.1 million shares for $5.83 billion, at an average price of just under $182 per share, which is below the recent closing price of $199.05 [2][6] - Despite selling Nvidia shares, SoftBank continues to invest heavily in AI, particularly in OpenAI, committing over $22 billion in additional funding [3][4] - Nvidia's stock has recently shown volatility, hitting a record high of $212 but experiencing a decline of more than 3% in midday trading, reflecting investor concerns about AI stock valuations [2][4] Company Actions - SoftBank's sale of Nvidia shares is intended to raise funds for further investments in OpenAI, indicating a strategic shift rather than a withdrawal from the AI sector [4][6] - The decision to sell Nvidia shares has been interpreted by some as a bearish signal, but it is primarily a move to finance ongoing AI investments [4][6] Market Sentiment - Investor sentiment around AI stocks is mixed, with concerns about potential overvaluation leading to discussions of an "AI bubble" [4][6] - Despite the volatility, Nvidia remains a popular holding, with over three-quarters of active fund managers maintaining positions in the stock as of October [7]