Softbank stock plummets after Nvidia sale, focus on AI evaluation – Business Live

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Introduction: Softbank stock falls after Nvidia stock sale

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Japanese tech investor stocks Softbank Shocked after revealing it has sold its stake in chipmaker Nvidia.

Softbank Yesterday, it surprised investors by revealing that it had sold its shares. Nvidia Last month, it raised $5.8 billion to fund other investments in artificial intelligence pioneers, including ChatGPT’s parent company. OpenAI.

And today’s market judgment has become decisive. Softbank’s At the start of trading in Tokyo, the stock hit a one-month low, briefly falling as much as 10% before closing down 3.5%.

Chart showing Softbank stock price for the past 5 days Photo: LSEG

nevertheless Softbank Although it claimed in October that there was no “specific” reason to sell Nvidia shares, the move raises further questions about whether the sky-high valuations given to companies in the AI space are solid.

It also highlights the increasing demand for funds. Softbank It faces the need to cover its bets on OpenAI and other investments.

share in Nvidia, The company’s high-speed chips are used to power AI data centers, and shares fell 3% yesterday amid broader declines in tech stocks.

Analysts suggested that Softbank’s However, this move need not cause alarm as we have not abandoned AI.

Ipek OzkardeskayaSenior Analyst swiss quotesexplains as follows:

SoftBank appears to be stepping up its bets further down the AI chain, into companies that actually leverage AI. use AI such as OpenAI and ABB Robotics.

This is good news for those frustrated by the circular nature of current AI trading. These are the companies that should be able to introduce real money into the ecosystem and grow beyond the big 7 companies that are “sending fake dollars to and from each other” to keep their stock prices rising. So the fact that Nvidia is down 3% is not surprising. The company and US Big Tech are now growing beyond borders.

For example, Meta signed a deal with Nebius, a Dutch cloud provider, and predicted rapid growth next year. When I say rapid, I mean rapid. The company’s sales soared more than 300% last quarter. What is their stock price? It plunged 7% yesterday, along with Coreweave, which fell 16%.