Eseandre Mordi
⬤ Nvidia's stock edged lower following news that SoftBank sold its complete $5.83 billion position in the AI chipmaker. The Japanese conglomerate also divested T-Mobile shares as part of a wider plan to free up capital for its growing AI portfolio. Since Nvidia powers much of the world's AI infrastructure, any major investor exit naturally catches market attention.
⬤ The timing is tricky, with potential tax policy changes looming on the horizon. Higher capital gains taxes or stricter reporting rules could squeeze smaller tech companies already dealing with heavy capital requirements. These shifts might also push talent toward friendlier tax environments, which could hurt firms in AI hardware, cloud computing, and semiconductors.
⬤ SoftBank is clearly doubling down on AI despite some investor concerns about how fast it's burning through cash. The company recently led major funding rounds for OpenAI and posted strong quarterly results—profits more than doubled to ¥2.5 trillion ($16.3 billion) thanks to Vision Fund gains and strategic asset sales. This gives them plenty of room to keep betting big on AI.
⬤ While the stock dipped on the news, most analysts see this as SoftBank reshuffling its portfolio rather than losing faith in Nvidia. Both companies are at pivotal moments as AI investment heats up and tax debates intensify, potentially reshaping the market landscape through 2026.
Eseandre Mordi
