• SoftBank Group has divested its entire $5.83 billion stake in Nvidia, contributing to a more than doubling of its quarterly profit.
  • The sale is part of a strategic pivot to aggressively fund new AI and semiconductor ventures, including major investments in OpenAI.
  • Nvidia shares edged lower following the news, introducing short-term volatility despite the chipmaker's strong market position.

SoftBank Group has sold off its entire stake in Nvidia Corp., a holding valued at approximately $5.83 billion, according to people familiar with the transaction. The move contributed significantly to the Japanese investment giant's quarterly profit surging to ¥2.5 trillion ($16.3 billion), far exceeding analyst forecasts.

The divestment marks a major portfolio shift for SoftBank as founder Masayoshi Son steers the conglomerate toward a more concentrated push into artificial intelligence. The capital from the Nvidia sale is being funneled into ambitious new ventures, including participation in a massive funding round for OpenAI and a proposed $6.5 billion investment in chip designer Ampere Computing, said people briefed on the matter.

Nvidia shares edged lower in pre-market trading following the disclosure, reflecting the market's reaction to a large block of shares hitting the market. The decline, however, is not seen as a reflection of Nvidia's core business health but rather a short-term response to the sale's mechanics. A spokesperson for Nvidia declined to comment on the transaction.

This is SoftBank's second major exit from the chipmaker, having sold a $4 billion stake back in 2019. The latest sale underscores the volatile nature of the current AI investment landscape, where even leading hardware beneficiaries like Nvidia can see their shares become a source of capital for investors betting on the next wave of technology.

Efforts to reach SoftBank for further comment on the timing of the sale were unsuccessful. The company's recent filings highlight a broader asset monetization strategy that also included the sale of some T-Mobile shares.

Correction: An earlier version of this article misstated the currency conversion for SoftBank's profit. The correct figure is $16.3 billion.