SoftBank Group Corp. witnessed a sharp 10% decline in its stock price on November 12, 2025, following the announcement that it had sold its entire stake in U.S. chipmaker Nvidia for $5.8 billion. The Japanese tech investment giant’s decision to divest from one of the world’s most valuable semiconductor companies has triggered investor concerns, despite the company reporting stronger-than-expected quarterly earnings and unveiling a 4:1 stock split.
The sell-off marks a strategic shift as SoftBank prepares to reallocate capital toward its ambitious artificial intelligence ventures, including the U.S.-based Stargate megaproject and further investments in OpenAI, the creator of ChatGPT.
Strategic Exit: SoftBank’s Nvidia Stake Sale
SoftBank disclosed that it sold 32.1 million Nvidia shares in October 2025, capitalizing on the chipmaker’s meteoric rise amid the global AI boom. The stake, valued at $5.8 billion, had appreciated significantly since SoftBank began rebuilding its position in 2020.
| Transaction Detail | Value |
|---|---|
| Shares Sold | 32.1 million |
| Total Value | $5.8 billion |
| Sale Date | October 2025 |
| Original Stake Value (2020) | ~$3 billion |
| Appreciation | ~93% |
Despite the profitable exit, the timing of the sale raised eyebrows, as Nvidia’s stock had recently dipped over 3% to $193.16 on NASDAQ amid broader concerns about AI valuations.
Market Reaction: SoftBank Shares Slide
SoftBank’s shares fell to a one-month low during early trading in Tokyo, reflecting investor unease over the company’s aggressive pivot away from high-performing assets. Analysts noted that while the sale generated liquidity, it also removed a key growth driver from SoftBank’s portfolio.
| Market Impact | Value |
|---|---|
| SoftBank Stock Drop | 10% |
| Nvidia Stock Dip | 3.2% |
| SoftBank Market Cap Loss | ~$8.5 billion |
| Trading Volume Surge | 2.5x daily average |
The decline overshadowed SoftBank’s robust Q2 earnings, which showed a substantial profit increase driven by its Vision Fund’s performance and AI-linked investments.
SoftBank’s AI Ambitions: Stargate and Beyond
The Nvidia stake sale is part of SoftBank’s broader strategy to double down on artificial intelligence. The company is channeling funds into Stargate, a U.S.-based AI infrastructure project aimed at building next-generation data centers and compute clusters.
| AI Investment Focus | Description |
|---|---|
| Stargate Project | AI supercomputing infrastructure in the U.S. |
| OpenAI Partnership | Strategic stake and joint ventures |
| Vision Fund 3 | AI-first investment thesis |
| Robotics & Automation | Expansion in logistics and healthcare AI |
SoftBank’s CEO Masayoshi Son has repeatedly emphasized that AI will be the “core of future civilization,” and the company’s capital reallocation reflects this conviction.
Historical Context: SoftBank’s Nvidia Relationship
SoftBank first invested in Nvidia in 2017 through its Vision Fund but exited in 2019. It began rebuilding its position in 2020, ahead of the AI boom triggered by ChatGPT’s debut in late 2022. The stake grew to over $3 billion by March 2025, making it one of SoftBank’s most lucrative bets.
| Year | Action | Outcome |
|---|---|---|
| 2017 | Initial investment | Vision Fund stake |
| 2019 | Full exit | Profit booking |
| 2020 | Re-entry | Strategic rebuild |
| 2025 | Full divestment | $5.8 billion sale |
Analyst Perspectives
Market experts are divided on the implications of SoftBank’s move:
- Bullish View: The sale frees up capital for high-growth AI ventures and reduces exposure to volatile tech stocks.
- Bearish View: Nvidia was a proven performer, and its removal weakens SoftBank’s equity portfolio.
Some analysts warn that SoftBank’s aggressive AI pivot may expose it to valuation risks, especially if the sector experiences a correction.
Comparative Analysis: Tech Giants’ AI Bets
| Company | AI Investment Focus | Recent Moves |
|---|---|---|
| SoftBank | Infrastructure, OpenAI | Nvidia stake sale, Stargate |
| Microsoft | OpenAI, Azure AI | $10B OpenAI investment |
| Alphabet | DeepMind, Gemini | AI-first product strategy |
| Amazon | AWS AI, Anthropic | $4B Anthropic stake |
SoftBank’s strategy aligns with global tech leaders, but its reliance on investment returns rather than product ecosystems makes its approach more vulnerable to market sentiment.
Conclusion
SoftBank’s 10% stock plunge following its $5.8 billion Nvidia stake sale underscores the delicate balance between strategic reinvestment and investor confidence. While the move signals a bold commitment to AI, it also raises questions about timing, portfolio stability, and long-term returns. As SoftBank doubles down on its AI vision, the market will closely watch whether its bets yield transformative results—or expose it to heightened risk.
Disclaimer: This article is based on publicly available financial disclosures and media reports. Readers are advised to consult official investor documents and regulatory filings for verified information.
