Nvidia Stock Falls. SoftBank Sells Stake in the Chip Maker as Another AI Play Pays Off.
Nov 11, 2025 05:41:00 -0500 by Adam Clark | #Chips
Nvidia chips are the favored choice for training artificial-intelligence models. (Courtesy NVIDIA)
Key Points
- SoftBank Group sold a $5.83 billion stake in Nvidia in October, coinciding with a surge in SoftBank’s fiscal second-quarter net profit.
- Nvidia’s shares fell 1.3% in premarket trading after the stake sale disclosure, despite a 5.8% gain the previous day.
- UBS analyst Timothy Arcuri maintained a Buy rating and a $235 target price for Nvidia ahead of its Nov. 19 earnings report.
Nvidia stock was falling early Tuesday after Japan’s SoftBank Group disclosed it had sold a $5.83 billion stake in the chip maker.
Nvidia shares were down 1.6% at $195.76 in premarket trading. The stock gained 5.8% the previous day amid optimism about the end of the U.S. government shutdown.
SoftBank disclosed its stake sale, which was conducted in October, as it reported a surge in its fiscal second-quarter net profit, driven by profit on its investment in ChatGPT-developer OpenAI.
The sale is fairly insignificant when set against Nvidia’s market capitalization of around $4.8 trillion, but comes in the run up to the chip maker’s earnings on Nov. 19 and amid a debate about potentially stretched valuations for companies linked to the artificial-intelligence boom.
Wall Street is still positive ahead of Nvidia’s earnings report. UBS analyst Timothy Arcuri kept a Buy rating on the stock and a $235 target price in a research note on Monday. He forecasts Nvidia will report earnings per share of $1.29 on revenue of $56.2 billion, slightly ahead of consensus estimates.
“A big focus of the [earnings] call will clearly be how quickly all of this AI infrastructure can be installed and any customer concentration risks that may develop,” Arcuri wrote.
The challenges of installation were on show in earnings from AI computing provider CoreWeave . While CoreWeave—which buys Nvidia chips and counts the chip maker among its investors—reported better-than-expected revenue Monday afternoon, its shares fell after executives said a partner is behind schedule in data center development.
Among other chip makers, Advanced Micro Devices was down 0.3% and Broadcom was falling 0.5% in premarket trading.
Write to Adam Clark at adam.clark@barrons.com