What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 3.1% in the afternoon session after Japanese tech investment giant SoftBank announced it had sold its entire stake in the artificial intelligence company. In an earnings statement, SoftBank confirmed it had offloaded its shares for $5.83 billion. While the company stated the sale was part of a push for "asset monetization," the move was seen by some as a sign that SoftBank believed the best of Nvidia's stock gains were in the past. Because Nvidia is one of the largest companies on Wall Street, the sale was a heavy weight on the market. The news also added to broader concerns about high valuations in the technology sector, particularly around artificial intelligence stocks that had seen exceptional performance.
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What Is The Market Telling Us
Nvidia’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 4.1% on the news that the stock retreated amid renewed concerns about stretched valuations in the AI space and geopolitical concerns as the U.S. government reportedly moved to block the company from selling even its less powerful, scaled-down artificial intelligence chips to China. The decision was aimed at stopping the sale of a reconfigured version of the advanced Blackwell chip, which had been designed specifically to avoid previous U.S. export controls. Reinforcing the news, Nvidia's CEO Jensen Huang stated there were "no active discussions" about selling these chips to Chinese customers. The development hit investor sentiment at a time when there were already wider concerns about high valuations for AI-related stocks. The news also coincided with a broader sell-off in the technology sector, which added to the downward pressure on the stock.
Nvidia is up 39.1% since the beginning of the year, and at $192.41 per share, it is trading close to its 52-week high of $207.04 from October 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $14,340.
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