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SoftBank Sells Nvidia Stake for $5.8B Despite AI Ambitions, Stock Slips

SoftBank’s Masayoshi Son Sells Nvidia Stake Following OpenAI-Driven Q2 Outperformance

  • SoftBank sold its entire NVIDIA stake after the September quarter, generating $5.83 billion from the sale of 32.1 million shares.
  • Significant gains for SoftBank Vision Fund 2 came largely from its investment in OpenAI, helping total Vision Fund investment gains reach $22.2 billion.
  • SoftBank also partially sold shares in T-Mobile and Deutsche Telekom, and expanded a margin loan using Arm Holdings to $20 billion.
  • The board approved a 4:1 stock split to make shares more accessible to investors.

SoftBank Group, the Japanese investment holding company led by Masayoshi Son, divested its holdings in Nvidia after the end of the September quarter, securing $5.83 billion from the sale of 32.1 million shares, as stated in its latest earnings release. This move came amid rising doubts about the long-term growth of Artificial Intelligence stocks. Nvidia stock saw a slight decline in premarket trading following the announcement.

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Despite exiting Nvidia, SoftBank reported investment gains of $22.2 billion for its Vision Funds during the second quarter, with Vision Fund 2 generating the largest portion. This performance was mainly driven by an unrealized valuation gain of roughly $6.6 billion on being an early backer of OpenAI, along with a separate derivative gain linked to an OpenAI forward contract.

In October, following the reporting period, SoftBank committed an additional $22.5 billion to OpenAI through Vision Fund 2, bringing its total investment—after accounting for co-investor syndication—to $30 billion. The company also revealed the partial sale of shares in both T-Mobile and Deutsche Telekom. In November, the margin loan secured by Arm Holdings, a SoftBank subsidiary, was increased from $13.5 billion to $20 billion.

According to company disclosures, Vision Fund 1’s gains were primarily due to higher valuations for investments in Coupang and DiDi Global, as well as an improved fair price for other portfolio companies. Overall, SoftBank more than doubled its net income for the quarter, posting a result of $16.2 billion compared to analyst expectations of $2.7 billion, based on Bloomberg.

To broaden its shareholder base, SoftBank’s board approved a 4-for-1 stock split, aiming to make its shares more accessible to a wider range of investors.

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