SoftBank Sells Entire Nvidia Stake for $5.8B

Published 19 hours ago·Updated 18 hours ago

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Above: Pedestrians walk past the SoftBank Group headquarters in Tokyo, Japan, on Nov. 11, 2025. Image copyright: KAZUHIRO NOGI/AFP/Getty Images

The Spin

Narrative A

SoftBank's decision to sell its NVIDIA shares reflects the bank's shifting priorities, especially in the tech sector. With its $30 billion OpenAI deal, SoftBank had no other choice but to divest from different areas to fund its commitment. Given OpenAI's rising valuation and SoftBank’s substantial returns, meeting this obligation is essential for SoftBank's future prosperity.

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Narrative B

The AI bubble mirrors the dotcom mania with extreme valuations and dangerous concentration risks. Seven tech giants now control a third of the S&P 500, creating a circular investment pattern and capital misallocation. To make matters worse, the economic backdrop lacks the favorable conditions that sustained the 1990s boom, meaning the crash will most likely be worse.

Guardian

Narrative C

The AI market's surge reflects solid fundamentals, not bubble-like speculation. Unlike past bubbles driven by poorly capitalized startups, today's tech gains come from established companies with strong earnings growth. While valuations are high, they have not reached the levels seen in historical bubbles that signal imminent collapse.

Goldman Sachs

Wall St Engine on X