Topline
Nvidia shares slumped in premarket trading on Tuesday, after SoftBank announced it had sold its entire stake in the chipmaker to fund its investments in OpenAI, marking the Japanese conglomerate’s latest move to cash out of Nvidia.
The Japanese investment firm previously cashed out of the chipmaker in 2019.
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Key Facts
Nvidia shares dipped more than 2% to around $195 in premarket trading Tuesday, after the stock jumped 5.7% the previous trading session.
SoftBank stated in its earnings report that it sold 32.1 million Nvidia shares in October for $5.83 billion, separately disclosing it had sold 40.2 million T-Mobile shares.
Softbank’s chief financial officer Yoshimitsu Goto, when asked about selling Nvidia shares, noted SoftBank’s OpenAI investment is “large,” adding an “even more than $30 billion investment” would be made, and “for that, we do need to divest our existing portfolio so that that can be utilized for our financing.”
This is a developing story.