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SoftBank Group sold its entire $5.8bn stake in Nvidia in October, as per reports. The move is said to have caused concerns about fresh AI bubble fears, analysts note. SoftBank offloaded 32.1mn shares and is said to be planning to fund their “all in” strategy, focusing heavily on AI initiatives. SoftBank needs the capital to bankroll massive projects, including the $500bn Stargate project for US data-center expansion and a planned $30–$40bn investment in OpenAI. As per reports, the company’s CFO noted that the sale was necessary to finance these substantial commitments, and was not a bearish call on Nvidia itself. However, the timing of the divestiture comes at a time where Wall Street CEOs and others have argued that AI valuations might be ahead of fundamentals. Following the announcement, Nvidia’s shares fell nearly 3%.
SoftBank’s dollar bonds were trading stable with its 6.875% Perp at 99.6, yielding 7.1%. Nvidia’s bonds were also trading stable with its 3.5% 2040s at 85.6, yielding 4.9%.
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