ZACKS·2025-11-12 17:01Core Viewpoint - SoftBank Group has sold its entire stake in Nvidia for $5.83 billion to fund a $22.5 billion investment in OpenAI, indicating a strategic shift in its investment focus from hardware to software in the AI sector [1][2][4]. Group 1: Strategic Reallocation - SoftBank sold 32.1 million shares of Nvidia in October, marking a significant change in its AI investment strategy [2]. - The company also reduced its stake in T-Mobile, generating an additional $9.17 billion [2]. - CFO Yoshimitsu Goto stated that the sale was aimed at maintaining financial strength while exploring new investment opportunities [3]. Group 2: Shift in AI Focus - Market analysts view SoftBank's divestment from Nvidia not as a retreat from AI but as a transition to the next level of the AI value chain, focusing on software through OpenAI [4]. - SoftBank's collaboration with Arm on chip designs indicates that it continues to pursue hardware ambitions alongside its software investments [5]. Group 3: Market Implications - The sale of Nvidia shares is seen as a strategic rebalancing rather than a negative signal for Nvidia's valuation, with SoftBank's association with OpenAI reinforcing the strength of AI investment themes [6]. - Speculation arises that SoftBank perceives limited upside in Nvidia's recent valuation surge, as Nvidia shares have tripled in value over the past two years [7]. - SoftBank's increased focus on AI models positions AI-themed ETFs as attractive investment opportunities, especially given OpenAI's significant deals with major tech companies [8]. Group 4: ETF Performance - AI-intensive ETFs such as Roundhill Generative AI & Technology ETF (CHAT), Global X Robotics and Artificial Intelligence ETF (BOTZ), and Global X Artificial Intelligence & Technology ETF (AIQ) have shown substantial gains, with CHAT up 59.2%, BOTZ up 15.6%, and AIQ up 29.4% over the past six months [9].