SoftBank sold its entire Nvidia stake last month, realizing nearly $6 billion, a move CEO Masayoshi Son said he regretted and framed as liquidity to fund a broad set of AI bets rather than a loss of confidence in Nvidia. The divestiture helps bankroll SoftBank’s expansive AI agenda—from Project Stargate with Oracle and OpenAI (aiming to mobilize $500 billion of U.S. AI infrastructure spending) and an expected $22.5 billion OpenAI investment by year-end (bringing its total to $30 billion), to a $2 billion Intel stake and acquisitions including Ampere and ABB’s robotics unit—illustrating a deliberate diversification across chips, generative AI, data centers, CPUs and robotics. The piece notes Nvidia now trades at roughly a 24x one-year forward P/E amid competitive headwinds (Alphabet TPUs, AMD GPUs, bespoke ASICs) but argues the valuation compression and recent partnerships with Anthropic, Palantir and Nokia make it an attractive long-term buying opportunity for investors.
SoftBank sold its entire Nvidia stake last month, realizing nearly $6 billion, and CEO Masayoshi Son publicly stated he regretted the sale, saying he "hadn't wanted to sell a single share" and expressing respect for Nvidia CEO Jensen Huang. Son framed the divestiture as liquidity management rather than a loss of conviction, which should temper investor concern that the sale reflects a fundamental negative view on Nvidia's business. The company is redeploying proceeds to an expansive AI agenda: Project Stargate with Oracle and OpenAI (aiming to mobilize $500 billion of U.S. AI infrastructure spending over four years), a pledged up-to-$40 billion commitment to OpenAI (with $22.5 billion expected by year-end to bring total to $30 billion), a $2 billion Intel stake, plus roughly $12 billion spent on Ampere and ABB’s robotics unit. These moves indicate deliberate diversification across chips, generative AI, data centers, CPUs and robotics and explain the timing of the Nvidia sale as portfolio reallocation to fund multiple strategic bets. Nvidia trades around a 24x one-year forward P/E as of Dec. 11, a meaningful compression driven by investor bubble concerns and rising competition from Alphabet's TPUs, AMD GPUs, and custom ASICs; the company’s recent alliances with Anthropic, Palantir and Nokia expand its addressable market and support the thesis that Nvidia can capture continued hyperscaler capex. The article concludes this valuation pullback presents a long-term buying opportunity, while also implying near-term downside risk from competitive and execution dynamics that could sustain volatility.
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