Softbank Sells Entire Stake in Nvidia
57 minutes ago
SoftBank is out of Nvidia stock—but not the AI trade.
The Japanese company in a Tuesday statement said it sold 32.1 million shares of chip giant Nvidia (NVDA), a “complete sale,” in October, raising $5.83 billion. That comes to an average price of just under $182, below Monday’s $199.05 per share close. (It also reported $9.17 billion in proceeds on sales of T-Mobile (TMUS) between June and September.)
Nvidia’s shares hit their latest record high of $212 in late October, but investors more recently have shown signs of wariness about valuations and the health of the AI trade. That’s shown up in today’s action, too; Nvidia’s stock was down more than 3% in midday trading, more than broader markets.
Nvidia CEO Jensen Huang (l) and Softbank CEO Masayoshi Son at an event in Tokyo last November.
Akio Kon / Bloomberg / Getty Images
But SoftBank isn’t pulling back from AI investments. It put billions of dollars into OpenAI earlier this year, making the ChatGPT owner the world’s most-valuable startup, and that appears to be behind some of the company’s latest investment moves; The company last month committed more than $22 billion in additional funding to OpenAI.
“We are making large investments in OpenAI,” The Wall Street Journal quoted SoftBank CFO Yoshimitsu Goto as saying today. “To do that, we have to use some of our existing assets to raise funds.”
Investors trying to connect the dots these days don’t have an easy job. Concerns about AI-stock valuations have weighed on shares lately, with some analysts suggesting shorting the hyperscalers whose spending has driven business and share prices this year. The word “bubble” has been in pretty heavy use in recent weeks.
But elsewhere in the trade, investors continue to look for opportunities to push some shares in the food chain higher. Yesterday, for example, it was memory and data-storage stocks. And interest in the big names has hardly dried up; Nvidia, for example, was held by more than three-quarters of active fund managers in October, according to a Bank of America analysis.
–David Marino-Nachison
Tesla Stock Slips Following Chinese Sales Numbers
2 hr 25 min ago
Various news services overnight reported that Tesla’s (TSLA) October auto sales in China fell to their lowest level in three years, about 26,000, citing the China Passenger Car Association. The reports indicated sliding market share in China, though also rising shipments of Teslas made in China to other markets.
That’s weighing on Tesla’s shares, which were recently down more than 2%. Investor attention has been largely elsewhere recently: The shares jumped yesterday alongside U.S. stocks, lifted by optimism about a possible end to the government shutdown, and late last week they retreated in part on a sell-the-news reaction to a shareholder vote approving a big new pay package for CEO Elon Musk.
Tesla shares have gone on a bumpy ride this year. The stock has gained nearly 8% since the start of 2025, significantly lagging the performance of the benchmark S&P 500 index.
TradingView
The vote removed a possible overhang—will Musk stick around for the next phase of Tesla’s growth or won’t he?—and formalized the company’s commitment to a set of targets upon which the CEO’s payout hinges. Several of them signal Tesla’s commitment to evolution into a business powered by robotaxis and robots.
But car sales remain important. For one, they still make up the lion’s share of Tesla’s revenue. And one of the targets requires the company to deliver a total of 20 million vehicles; another requires 10 million active subscriptions to Tesla’s self-driving software, which can’t happen without vehicle sales.
On a quarter-to-quarter basis, investors still care about the “old-school” Tesla business. Deliveries in the latest quarter came in higher than expected, though the expiration of U.S. subsidies likely pulled forward demand for it and other automakers.
–David Marino-Nachison
AMD Expected to Lay Out AI Roadmap Today
4 hr 20 min ago
Traders will be on the lookout for updated financial targets from Advanced Micro Devices as it hosts an investor day later today.
AMD’s (AMD) shares climbed more than 4% Monday ahead of the event, which some analysts have suggested could be a positive catalyst for the chipmaker’s stock. The stock, which has doubled since the start of the year, was down about 1% in recent premarket trading.
Analysts at Bank of America, Citi, and Jefferies said they’ll be watching for an updated outlook and financial targets from AMD’s analyst day event. CEO Lisa Su is widely expected offer more details on the company’s artificial intelligence roadmap. (You can watch the stream, scheduled for 1 p.m. ET, here.)
AMD CEO Lisa Su speaking during an interview with Bloomberg Television last month.
David Paul Morris / Bloomberg / Getty Images
A bigger estimate of AMD’s total addressable market, thanks to booming AI demand, might help boost confidence in the stock, the analysts said, following a strong run this year driven lately by a string of big AI deals, including one with ChatGPT maker OpenAI.
Last week, AMD posted record quarterly results and an upbeat outlook on surging demand for its data center chips, though the stock was little changed following the results amid some worries about an AI bubble.
Heading into the event, Wall Street analysts lean more bullish on the stock, with seven of the 10 with current ratings compiled by Visible Alpha calling it a “buy,” compared to three neutral ratings. Their mean target around $269 would suggest nearly 10% upside from Monday’s close.
–Kara Greenberg
Major Stock Index Futures Down Slightly
6 hr 5 min ago
Futures tied to the S&P 500 were down 0.2%.
TradingView
Nasdaq 100 futures fell 0.4%.
TradingView
Dow Jones Industrial Average futures rose fractionally.
TradingView
