Nvidia shares slipped 1% in pre-market trading on Monday after reports confirmed that SoftBank Group sold its entire stake in the AI chipmaker, collecting about $5.8 billion from the sale.
The Japanese conglomerate’s move comes amid surging demand for Nvidia’s graphics processing units (GPUs), which dominate the artificial intelligence sector. SoftBank described the sale as a portfolio rebalancing decision, though it did not provide further details.
The stake exit unsettled investors, raising questions about valuation pressures as Nvidia’s market capitalization surpasses $3 trillion. The stock has soared over 150% year-to-date, supported by strong AI-driven revenue growth.
The news also weighed on the broader semiconductor sector, with AMD and TSMC both edging slightly lower. Nasdaq futures slipped 0.3%, reflecting broader caution in the tech space ahead of Nvidia’s upcoming quarterly earnings report.
Analysts, however, framed SoftBank’s sale as a tactical move, not a negative signal on Nvidia’s long-term prospects. “Nvidia’s fundamentals remain strong, and demand from AI hyperscalers continues to expand,” one market strategist said.
Traders now expect elevated volumes at market open as investors digest the implications of SoftBank’s exit and monitor whether buying support emerges at lower levels.
