Japanese technology giant SoftBank Group Corp has made headlines with the announcement of the complete sale of its stake in US-based semiconductor powerhouse Nvidia Corp for roughly $5.83 billion, according to Bloomberg. The move comes as the Tokyo-based conglomerate reported stronger-than-expected earnings for the second quarter of the 2025-26 financial year (Q2FY26), showcasing a strategic pivot towards its growing artificial intelligence (AI) portfolio.

The news was confirmed during SoftBank’s earnings call, during which the company also highlighted significant gains from its Vision Fund, particularly its stake in OpenAI, the creator of ChatGPT. Following the announcement, SoftBank shares rose 2% in Tokyo trading, reflecting investor confidence ahead of the detailed earnings briefing.

SoftBank’s Strategic Sale of Nvidia Shares

By the end of March this year, SoftBank had increased its Nvidia holdings to approximately $3 billion, totaling 32.1 million shares. However, in a decisive move in October, the conglomerate sold all these shares, marking a complete exit from Nvidia. This sale significantly contributed to SoftBank’s Q2 net profit, which surged to 2.5 trillion yen ($16.2 billion). Analysts attributed a major portion of this growth to the Vision Fund’s investments, which generated 2.16 trillion yen in gains for the quarter, predominantly from OpenAI.

Additionally, SoftBank disclosed that it sold part of its stake in T-Mobile for $9.17 billion, part of its broader strategy to “monetize assets” while maintaining financial stability. SoftBank Chief Financial Officer Yoshimitsu Goto emphasized this approach during an investor presentation:

“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength. So through those options and tools we make sure that we are ready for funding in a very safe manner.”

This asset monetization strategy reflects SoftBank’s careful balancing act: generating liquidity for new investments without compromising its financial foundation. The move did cause a slight dip in Nvidia shares, which fell 0.95% in premarket trade on Tuesday.

SoftBank’s Historical Relationship with Nvidia

SoftBank’s exit from Nvidia is not unprecedented. The company’s Vision Fund had been an early investor in the US chipmaker, building a stake valued at approximately $4 billion in 2017. That investment was entirely divested in January 2019. Despite the repeated sales, SoftBank maintains ties to Nvidia through various AI initiatives dependent on Nvidia’s technology, including the ambitious $500 billion Stargate data center project in the United States, as reported by CNBC.

Rolf Bulk, equity research analyst at New Street Research, explained the rationale behind the latest sale:

“This should not be seen as a cautious or negative stance on Nvidia, but rather in the context of SoftBank needing at least $30.5 billion of capital for investments in the October-December quarter, including $22.5 billion for OpenAI and $6.5 billion for Ampere.”

He added that the amount being invested in a single quarter exceeds the total SoftBank invested in the previous two years combined. Morningstar analyst Dan Baker also stressed that the sale does not indicate a shift in the company’s long-term strategy:

“[SoftBank] is using the money to invest in other AI-related companies. It’s a reallocation, not a retreat.”

SoftBank’s Growing Focus on AI and Semiconductor Infrastructure

SoftBank founder Masayoshi Son has been aggressively pushing the company into the AI space, particularly around AI infrastructure and semiconductor technology. The firm’s initiatives include:

• A planned $30 billion injection into OpenAI.

• A proposed $6.5 billion acquisition of chip designer Ampere Computing LLC.

• Potential partnerships with Taiwan Semiconductor Manufacturing Co (TSMC) and other key players to establish a $1 trillion AI manufacturing hub in Arizona.

• The $500 billion Stargate project, a US-based data center initiative leveraging Nvidia technology.

These moves reflect Son’s strategy of concentrating on AI-driven technologies and semiconductor infrastructure while strategically divesting non-core assets to fund these ventures. Analysts see this AI focus as a major growth driver, with Citigroup’s Keiichi Yoneshima noting that SoftBank has successfully recouped investments from an increasing number of ventures, prompting analysts to raise forecasts.

Vision Fund: A Powerhouse of AI Gains

The Vision Fund, SoftBank’s flagship investment vehicle, has posted extraordinary results, contributing to a record profit in Q2FY26. The fund has been aggressively investing across the AI value chain, including chips, large language models, and robotics.

Goto highlighted the role of OpenAI in this success:

“The reason we were able to have this result is because of September last year, when we first invested in OpenAI. Its latest valuation milestone of $500 billion marks one of the largest valuations in the world, according to fair value.”

The Vision Fund’s aggressive AI investment strategy and the Nvidia stake sale collectively helped SoftBank report net income far exceeding analyst expectations, with a surprise profit of ¥2.5 trillion ($16.2 billion) against predictions of ¥418.2 billion.

Investor Relations and Market Reactions

SoftBank’s stock has experienced volatility recently, reflecting broader market concerns over a potential AI bubble. However, Goto stressed that the company is committed to providing ample investment opportunities for shareholders:

“Our share price recently has been going up and down dynamically… we want to provide as many investment opportunities as possible.”

SoftBank also announced a four-for-one stock split, further enhancing investment accessibility for shareholders.

A Humorous Throwback: Jensen Huang and Masayoshi Son

The Nvidia stake sale echoes a memorable moment between SoftBank’s Masayoshi Son and Nvidia CEO Jensen Huang. In November 2024, during a visit to Japan, Huang joked about Son’s timing with Nvidia shares:

“Masa was the largest shareholder of Nvidia. We can cry together.”

This lighthearted exchange highlighted Son’s history of strategic—but sometimes early—exits from high-performing tech investments. Despite the humor, Son’s focus on AI remains unwavering, reinforcing SoftBank’s long-term commitment to innovation.

SoftBank’s AI Ambitions: The Road Ahead

Masayoshi Son, now 68, continues to steer SoftBank’s AI-focused initiatives aggressively, emphasizing investments in OpenAI, chip design, and large-scale AI infrastructure projects. Among these:

• Stargate Data Center Rollout: A $500 billion project leveraging Nvidia technology to create AI-optimized data centers in the US.

• OpenAI Investment: A planned $30 billion injection to bolster AI capabilities.

• Ampere Computing Acquisition: A $6.5 billion deal for the US-based chip designer, expanding SoftBank’s semiconductor footprint.

• AI Manufacturing Hub in Arizona: Discussions with TSMC and other semiconductor leaders to build a $1 trillion AI-focused manufacturing ecosystem.

• Exploration of US Chipmaker Marvell Technology: Earlier this year, SoftBank explored a potential acquisition, demonstrating its appetite for strategic expansion in chipmaking.

However, these ambitious plans come with risks. Analysts have raised concerns about inflated AI valuations and whether the projected returns justify the massive expenditures. Balancing these large-scale investments with financial stability remains a critical challenge for the company.

A Strategic Reallocation Rather Than Retreat

SoftBank’s complete divestment from Nvidia signals a strategic reallocation of resources rather than a retreat from AI or semiconductor investments. By liquidating $5.83 billion worth of Nvidia shares, along with partial sales of T-Mobile holdings, SoftBank has freed up capital to double down on high-growth AI ventures, including OpenAI, Ampere Computing, and the Stargate project.

The Tokyo-based conglomerate continues to maintain strong ties with Nvidia through AI ventures dependent on its technology, ensuring that its business remains closely aligned with semiconductor innovation. Analysts emphasize that this strategy is forward-looking, aimed at consolidating SoftBank’s leadership in AI and semiconductor infrastructure globally.

In essence, SoftBank is repositioning itself as an AI-centric powerhouse, capitalizing on its historical investment acumen while preparing to fund the next wave of transformative technologies. The sale of Nvidia shares marks a significant but calculated step in this journey, underscoring the firm’s willingness to take bold moves to maintain its competitive edge in the rapidly evolving tech landscape.

With inputs from agencies

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