SoftBank Dives 10% After Ditching $5.8 Billion Nvidia Stake

This article first appeared on GuruFocus.

SoftBank (SFTBY) just pulled a bold move and investors are feeling jittery. The stock plunged nearly 10% in Tokyo after reports surfaced that the firm dumped its entire $5.8 billion stake in Nvidia (NVDA). It's not because SoftBank lost faith in the AI chip king it's because Masayoshi Son needs cash, and fast, to fuel his massive AI ambitions, Reuters reports.

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Son's shopping list is wild: a $22.5 billion investment in OpenAI, a $6.5 billion buyout of chipmaker Ampere, and a $5.4 billion deal for ABB's robotics arm. He's also rolling out Stargate data centers and building an AI manufacturing hub in Arizona with TSMC.

Analysts estimate SoftBank's AI push totals over $41 billion, but the company ended September with just $28 billion in cash. That's why investors are sweating the balance sheet even as Son bets everything on dominating the AI future. Nvidia stock barely blinked, rising 1.6% in premarket trading.

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