AI bubble concerns – www.israelhayom.com https://www.israelhayom.com israelhayom english website Tue, 11 Nov 2025 10:18:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 https://www.israelhayom.com/wp-content/uploads/2021/11/cropped-G_rTskDu_400x400-32x32.jpg AI bubble concerns – www.israelhayom.com https://www.israelhayom.com 32 32 Why did SoftBank sell $5.83 billion NVIDIA shares https://www.israelhayom.com/2025/11/11/softbank-nvidia-sale-openai-investment-vision-fund/ https://www.israelhayom.com/2025/11/11/softbank-nvidia-sale-openai-investment-vision-fund/#respond Tue, 11 Nov 2025 04:00:55 +0000 https://www.israelhayom.com/?p=1101735 SoftBank completed a strategic exit from Nvidia, selling 32.1 million shares worth $5.83 billion in October as the Japanese conglomerate positions for massive artificial intelligence investments. The divestment, alongside a $9.17 billion T-Mobile stake sale, helps fund SoftBank's $30.5 billion quarterly investment pipeline, including a $22.5 billion commitment to ChatGPT developer OpenAI, according to CNBC. Chief Financial Officer Yoshimitsu Goto characterized the moves as part of the firm's asset monetization strategy.

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SoftBank disclosed Tuesday its full exit from semiconductor manufacturer Nvidia through an October sale of 32.1 million shares worth $5.83 billion, enabling the Japanese investment firm to fund its artificial intelligence ventures including a $22.5 billion OpenAI stake. The company simultaneously liquidated a T-Mobile portion generating $9.17 billion, with Chief Financial Officer Yoshimitsu Goto characterizing both moves as "asset monetization" designed to maintain "We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength," according to CNBC.

Nvidia shares declined 0.95% in premarket trading following the announcement, which contributed to SoftBank's doubled fiscal second-quarter profits alongside a $19 billion Vision Fund gain. The chipmaker exit marks SoftBank's second divestment from Nvidia since initially accumulating a $4 billion position in 2017 before selling in January 2019, though the Tokyo-based firm maintains operational ties through AI ventures including the $500 billion Stargate data center project, CNBC reported.

Jensen Huang, NVIDIA CEO, now runs a company worth 5 trillion dollars )REUTERS/Dado Ruvic/Illustration/File Photo; Anna Moneymaker / GETTY IMAGES NORTH AMERICA / Getty Images via AFP_

New Street Research analyst Rolf Bulk told CNBC the sale should be interpreted not as skepticism toward Nvidia but rather "in the context of SoftBank needing at least $30.5B of capital for investments in the Oct-Dec quarter, including $22.5B for OpenAI and $6.5B for Ampere" – representing "more in a single quarter than it has invested in aggregate over the two prior years combined."

SoftBank's Vision Fund generated its $19 billion quarterly gain primarily through OpenAI and electronic payment service PayPay investments as the vehicle aggressively expanded across artificial intelligence technologies from semiconductors to language models and robotics. Goto credited the timing of SoftBank's initial OpenAI investment in September of the previous year for the results, noting the startup's $500 billion valuation ranks among the world's highest, CNBC reported.

SoftBank CEO Masayoshi Son attends an event to pitch AI for businesses in Tokyo, Japan February 3, 2025 (REUTERS/Kim Kyung-Hoon)

The Japanese conglomerate experienced recent stock volatility amid broader market concerns about artificial intelligence valuations, prompting Goto to tell shareholders Tuesday: "Our share price recently has been going up and down dynamically… we want to provide as many invest opportunities as possible." The company's announced four-for-one stock split aims to expand shareholder investment access, according to CNBC.

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Nvidia shatters corporate records with first-ever $5 trillion market cap https://www.israelhayom.com/2025/10/29/nvidia-first-5-trillion-valuation-ai-chips/ https://www.israelhayom.com/2025/10/29/nvidia-first-5-trillion-valuation-ai-chips/#respond Wed, 29 Oct 2025 10:30:42 +0000 https://www.israelhayom.com/?p=1098613 Nvidia achieved an unprecedented milestone Wednesday, becoming the first company ever to reach a $5 trillion market valuation. The semiconductor giant's shares rose 3% at market opening, propelled by extraordinary demand for its artificial intelligence chips. The company reached this threshold just three months after crossing $4 trillion, demonstrating the rapid pace of AI-driven investment. CEO Jensen Huang outlined an ambitious vision at the company's GTC conference, while potential US-China trade discussions and major partnerships with OpenAI and Intel further boosted investor confidence. (448 characters)

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Nvidia surpassed a $5 trillion market valuation Wednesday, achieving what no corporation has accomplished before as artificial intelligence chip demand drives the semiconductor giant to extraordinary heights. The company reached this milestone at Wednesday's opening bell, arriving just three months after crossing $4 trillion, while the previous climb from $3 trillion to $4 trillion required approximately 13 months, CNN reported.

The chipmaker's shares climbed 3% following market opening Wednesday, with the stock gaining roughly 50% throughout 2025 and consistently ranking among the S&P 500's top performers as AI investment continues fueling dramatic growth, according to CNN. Wednesday's boost stemmed from expectations surrounding potential discussions between US President Donald Trump and Chinese leader Xi Jinping that could unlock China's market for premium AI chips, while Tuesday witnessed shares rising after CEO Jensen Huang unveiled his vision describing a future with Nvidia chips inhabiting cellular towers, automated factories, and autonomous vehicles at the company's inaugural GTC conference keynote in Washington, where he praised Trump.

NVIDIA's CEO Jensen Huang against the backdrop of an Israeli NVIDIA office (Courtesy of NVIDIA Israel; Patrick T. Fallon / AFP)

The corporation's AI processors prove indispensable for operating data centers powering the technology, with Nvidia standing central to the AI expansion through both revenue-generating chips and investments channeled into other major industry players, CNN noted. Tuesday brought technology giant Apple crossing the $4 trillion threshold, signaling the iPhone retains sufficient appeal despite the company's lag in AI competition.

Recently, Nvidia and AI leader OpenAI revealed a significant collaboration under which the ChatGPT developer will acquire billions in chips in return for a $100 billion Nvidia investment distributed over time, while Nvidia additionally disclosed a $5 billion investment in struggling chipmaker Intel, according to CNN.

Nvidia CEO Jensen Huang holds a Grace Blackwell NVLink72 as he delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025 (AFP / Patrick T. Fallon)

However, the reciprocal spending activity combined with remarkable industry growth rates and ambiguity surrounding AI investment returns has sparked concerns the AI market might represent a bubble awaiting collapse, CNN reported.

Nevertheless, Nvidia executives stated during the August earnings call that the corporation anticipates benefiting from as much as $4 trillion in AI infrastructure expenditures by decade's end, with the most recent quarter generating nearly $26 billion in net income, CNN noted.

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