Core Viewpoint - SoftBank Group has sold all its shares in Nvidia for $5.83 billion, with founder Masayoshi Son planning to invest heavily in the AI sector to enhance influence [2][3]. Group 1: SoftBank's Actions - SoftBank sold its entire stake in Nvidia for $5.83 billion, which is part of a broader strategy to invest in AI [2][3]. - The company also sold $9.17 billion worth of T-Mobile shares between June and September [3]. - SoftBank has committed to an additional investment of $22.5 billion in OpenAI, to be completed through Vision Fund 2 by December [3]. Group 2: Nvidia's Market Performance - Nvidia's stock price surged by 5.79% on November 10, with a year-to-date increase of over 48%, bringing its market capitalization to $4.84 trillion [2]. - Nvidia's founder Jensen Huang has also sold over $1 billion in Nvidia stock since June [2]. Group 3: Market Sentiment and Risks - Recent indicators suggest that AI investments have reached extreme levels, with market risks accumulating rapidly [2]. - Michael Burry's hedge fund has taken a significant short position against Nvidia and Palantir, holding over $1 billion in put options, indicating skepticism about AI stocks [5][10]. - Analysts warn that the current AI investment frenzy may be approaching a critical point, with potential implications for the U.S. and global economies [2][19]. Group 4: Financial Performance of SoftBank - SoftBank reported a net profit of 2.5 trillion yen for the second quarter, significantly exceeding market expectations [4]. - The company's revenue for the first quarter of the 2025-2026 fiscal year was 1.82 trillion yen, a 7% year-on-year increase, with a pre-tax profit of 689.94 billion yen, up 205.7% [3][4].

Core Insights - Huang Renxun, the founder of NVIDIA, visited Taiwan for the fourth time this year, emphasizing the importance of TSMC to NVIDIA's operations [1][3] - Huang stated that NVIDIA's latest Blackwell chips are facing strong demand, leading to increased need for TSMC's wafers, although no discussions on pricing took place during the visit [3] - Huang highlighted that the semiconductor industry is experiencing robust growth, which is causing various shortages, including storage chips [3] - NVIDIA's GPU architecture is positioned as more versatile than ASIC chips, applicable in AI, science, physics, and quantum fields, which is a core competitive advantage [3] Company Performance - NVIDIA's market capitalization is approximately $4.57 trillion, with a decline of over 7% this week [4] - Notably, Michael Burry has bet over $1 billion against NVIDIA and other tech companies, holding significant put options on NVIDIA [6][8] - Following Burry's short position disclosure, NVIDIA's stock price dropped by 3.96%, contributing to a total decline of 9% over four trading days, resulting in a market value loss of $455.1 billion [9]

Group 1 - Michael Burry's hedge fund, Scion Asset Management, disclosed a third-quarter position holding over $1 billion in put options, representing 80% of its total assets, betting against AI stocks Nvidia and Palantir [1][5][6] - Nvidia's stock price fell by 3.96% the day after the report, while Palantir experienced a larger decline of 7.95%, with Nvidia's market cap dropping by $45.51 billion (approximately 324 billion RMB) over four trading days [5][6] - Scion Asset Management's total holdings amount to approximately $1.38 billion, with a significant portion concentrated in put options for Nvidia and Palantir [6][10] Group 2 - Burry's fund previously established a short position in Nvidia worth over $97 million in the first quarter, which was fully liquidated by the second quarter [8][10] - The put options give holders the right to sell stocks at a specific price in the future, serving as a typical short-selling tool [7] - Market interest in shorting Nvidia is declining, with short positions decreasing from approximately 315 million shares to about 211 million shares between June 2024 and October 2025 [22][24] Group 3 - Palantir's CEO criticized Burry's shorting actions, asserting that the companies he targets are genuinely profitable in the AI sector [19] - Palantir reported third-quarter revenue of $1.18 billion, a 63% year-over-year increase, and has exceeded analyst expectations for 21 consecutive quarters [19] - Concerns about Palantir's high valuation multiples and performance relative to its valuation have led to a "good news already priced in" sentiment in the market [19][25] Group 4 - Major investment banks are adopting a dual strategy of lending while simultaneously shorting stocks in the AI sector to hedge against potential risks [27][28] - Deutsche Bank has injected billions into the data center industry, primarily financing operators serving major tech companies, while also exploring various hedging strategies [27][28] - The financial sector is cautious about the rapid depreciation of infrastructure and the unverified profitability models in the AI industry, reflecting a complex sentiment towards AI investments [28]