{"id":6620,"date":"2025-11-11T19:46:37","date_gmt":"2025-11-11T19:46:37","guid":{"rendered":"https:\/\/musictechohio.online\/site\/nvidia-stock-softbank-ai\/"},"modified":"2025-11-11T19:46:37","modified_gmt":"2025-11-11T19:46:37","slug":"nvidia-stock-softbank-ai","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/nvidia-stock-softbank-ai\/","title":{"rendered":"Nvidia Stock Lurches Down as SoftBank Pulls Entire Investment"},"content":{"rendered":"
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Last month, we shared a story<\/a> <\/strong>about Seaport Global Securities analyst Jay Goldberg, who defied the odds as the only voice out of 80 Bloomberg <\/em>stock watchers <\/strong>who rated Nvidia as a \u201csell.\u201d While Goldberg makes some very good points \u2014 mostly, that AI simply isn\u2019t proficient <\/strong>enough, at least yet, to justify its incredible chokehold on the US economy \u2014 the consensus on Wall Street has been firmly against him.<\/p>\n

Case in point, even after Goldberg made his assessment in the last week of October, investors continued to dump money into Nvidia, which is seen as the \u201cshovel merchant<\/a>\u201d to the AI goldrush. So much money, in fact, that the company\u2019s market cap briefly shot up above $5 trillion<\/a> \u2014 the first company in history to do so.<\/p>\n

All that is to say, conventional wisdom is that you\u2019d be nuts to pull an investment in Nvidia right now. Yet that\u2019s exactly what Japanese investment firm SoftBank did on Tuesday, sending numerous tech stocks into a slide.<\/p>\n

According to Bloomberg<\/em><\/a>, SoftBank disclosed it was pulling its $5.8 billion worth of holdings in Nvidia early Tuesday morning, ending its reign as one of the chip giant\u2019s most prominent backers<\/a>. The news immediately sent shockwaves throughout the market, dragging Nvidia\u2019s stock down by around 2.6 <\/strong>percent as of Tuesday afternoon.<\/p>\n

As if to show how codependent the AI industry is, other tech giants were dragged down too, with stock in companies like Tesla falling by 1.8 percent, Meta by 0.95 percent, and Intel around 0.9 percent. Overall, the tech-heavy Nasdaq Index<\/a> was down by 0.2 percent, while the S&P 500 struggled to maintain a flatline.<\/p>\n

Overall, it would<\/em> be awful news for the AI industry if it wasn\u2019t for one little wrinkle: SoftBank is planning on using its previous Nvidia holdings to back OpenAI, the private company behind ChatGPT. It\u2019s already given OpenAI $7.5 billion, with plans for another $22.5 billion soon, as Bloomberg<\/em> reports.<\/p>\n

In other words, don\u2019t be shocked if the sell-off evens out in the coming days, as Yahoo Finance <\/a><\/em>suggests<\/a>.<\/p>\n

That said, there is at least one lesson to take away from the episode. While most other tech stocks tumbled, Apple soared by over 1.5 percent, its share price reaching an all-time high of $273.53. This is despite a disappointing announcement on Monday that the tech giant was delaying the release of the next iPhone Air<\/a> in 2026. So what gives?<\/p>\n

When you peel back the \u201cbig tech\u201d trappings, Apple stands out as the largest tech corporation to maintain ambivalence about the AI boom. Back in June, Apple\u2019s research lab dropped a bombshell paper<\/a> calling out companies like OpenAI for selling \u201cthe illusion of thinking\u201d in AI chatbots.<\/p>\n

Apple has increasingly downplayed any efforts at building out a proprietary AI model<\/a>, after early attempts failed rather spectacularly<\/a>.<\/p>\n

All in all, don\u2019t count on Apple to weather the storm completely if the entire AI bubble<\/a> begins to pop, but when it comes to the touch-and-go volatility of the AI news cycle, the company might just have the last laugh.<\/p>\n

More on Nvidia: <\/strong>Nvidia CEO Says China Is \u201cGoing to Win\u201d the AI Race<\/a><\/em><\/p>\n

The post Nvidia Stock Lurches Down as SoftBank Pulls Entire Investment<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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