SoftBank Sells Entire NVDA Stake: $5.8 Billion Liquidation Signals AI Sector Shift

This analysis is based on breaking news reports from ABC News [1] and Fortune [2] published on November 11, 2025, regarding SoftBank Group Corp.'s complete divestment of its Nvidia holdings.

SoftBank executed a strategic liquidation of its entire 32.1 million share stake in Nvidia Corp. during October 2025 for $5.8 billion, representing a significant pivot in AI investment strategy. The move freed capital for SoftBank’s ambitious $30+ billion commitment to OpenAI while maintaining operational partnerships in AI infrastructure. The transaction created immediate market pressure on NVDA, which declined 3.6% over three days to $192.27, while SoftBank’s stock gained nearly 2% following the announcement.

The sale created substantial supply pressure in NVDA shares, with the stock experiencing a 3-day decline from $199.05 to $192.27 [0]. The immediate market reaction included a 1.3% premarket drop and 2% decline at open, though the stock stabilized to a 0.46% loss at $192.27 by the announcement time [0]. The sale price of approximately $182 per share was 5.6% below the current market price, suggesting SoftBank may have sacrificed some upside for liquidity [1][0].

SoftBank’s divestment appears driven by strategic capital reallocation rather than valuation concerns. The company faces significant funding requirements with $113 billion in AI investment commitments against $58.5 billion in current funding capacity [1]. CEO Masayoshi Son emphasized that “the risk of not investing is far greater than the risk of investing,” reflecting an aggressive stance on AI infrastructure development [2].

The timing aligns with SoftBank’s record Q2 performance, with profits doubling to $16.6 billion, providing financial flexibility for the strategic pivot [1]. The company maintains operational ties to Nvidia through partnerships like the Stargate Project and AI supercomputer collaborations, suggesting the move represents portfolio rebalancing rather than a fundamental view on Nvidia’s prospects [1][2].

This marks SoftBank’s second major Nvidia divestment, following a 2019 sale that resulted in missing over $150 billion in potential gains [2]. The historical context raises questions about SoftBank’s timing and strategic discipline, though the current AI investment thesis differs significantly from the previous cycle.

For NVDA investors, the sale introduces several risk factors:

• Large-cap supply pressure
  : 32.1 million shares represent significant market absorption needs [1]
• Valuation scrutiny
  : Major institutional rotation may signal concerns about AI chip valuations [1]
• Sector maturity indicators
  : Movement from hardware ownership to software investments could indicate AI sector evolution [1]

The transaction reveals broader market dynamics:

1. AI Sector Rotation
   : Institutional investors are shifting from pure-play hardware to integrated AI infrastructure plays
2. Capital Allocation Efficiency
   : Major tech investors are optimizing portfolios for direct AI operational involvement rather than passive hardware exposure
3. Funding Pressures
   : Even well-capitalized firms like SoftBank face liquidity challenges meeting massive AI investment commitments

SoftBank’s move signals a maturation of AI investment strategies from hardware speculation to infrastructure deployment. The company is transitioning from being a hardware investor to an AI infrastructure operator, requiring different capital allocation and risk management approaches [2].

• NVDA Supply Pressure
  : 32.1 million shares entering the market could create short-term volatility [0][1]
• Valuation Concerns
  : Major institutional exits may trigger broader reevaluation of AI chip valuations [1]
• Sector Rotation Risk
  : Hardware-focused AI investments may face capital outflows to software plays

• Entry Points
  : NVDA’s pullback to $192.27 may present attractive entry levels for long-term investors [0]
• Sector Diversification
  : The rotation may create opportunities in AI software and infrastructure companies
• Strategic Partnerships
  : Companies maintaining operational ties with both SoftBank and Nvidia could benefit from the realignment

The immediate focus should be on NVDA’s ability to maintain support above the $190 level [0]. Short-term volatility is expected as the market absorbs the 32.1 million share supply. Medium-term implications will depend on SoftBank’s progress with OpenAI investments and whether additional asset sales are required to meet funding commitments.

• Transaction Details
  : SoftBank sold 32.1 million NVDA shares for $5.8 billion in October 2025 [1]
• Market Impact
  : NVDA declined 3.6% over three days to $192.27; SoftBank stock gained nearly 2% [0][1]
• Strategic Rationale
  : Funding $30+ billion OpenAI commitment while maintaining AI infrastructure partnerships [2]
• Financial Context
  : SoftBank Q2 profits doubled to $16.6 billion; faces $113B vs $58.5B funding gap [1]
• Historical Context
  : Second major NVDA sale following 2019 divestment that missed $150B+ gains [2]
• Technical Levels
  : NVDA trading above $190 support with elevated volume [0]

The analysis suggests this represents a strategic portfolio rebalancing by SoftBank rather than a fundamental negative view on Nvidia, though the market may require time to absorb the significant share supply and fully assess the implications for AI sector allocation strategies.