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SoftBank Group shares plunged nearly 10 per cent on Wednesday, after the Japanese technology giant revealed it had sold its entire holding in US chipmaker Nvidia for around $5.83 billion. The selloff pushed SoftBank’s stock to a one-month low, even as the company reported stronger-than-expected quarterly earnings and announced a four-for-one stock split to boost liquidity.

The market reaction surprised many analysts, who expected upbeat results and the stock split to lend support. Instead, investors appeared to focus on the company’s decision to cash out of Nvidia at a time when the chipmaker remains central to the global AI boom.

SoftBank had exited Nvidia once before, in 2019, but began rebuilding a small position a year later. By March 2025, that stake had grown to about $3 billion, coinciding with a historic surge in semiconductor valuations led by Nvidia.

The chipmaker’s market value has climbed by more than $2 trillion over the past two years, driven by soaring demand for AI hardware. That rally, combined with SoftBank’s early bet on OpenAI, has delivered a windfall for the Japanese conglomerate.

In the fiscal second quarter, SoftBank reported a net profit of ¥2.5 trillion ($16.2 billion) — a figure far exceeding analysts’ forecasts of ¥418.2 billion. The strong results were supported by revaluation gains across its technology investments and its exposure to the fast-growing AI ecosystem.

SoftBank’s investment in OpenAI has also seen a sharp mark-up, with the US startup’s valuation rising by about $14.6 billion since the group’s entry. Despite the Nvidia sale, SoftBank said it continues to work closely with the chipmaker through various partnerships and portfolio companies.

The weakness in SoftBank shares spilled over into other technology counters in Asia. Semiconductor testing company Advantest and chip-equipment maker Tokyo Electron each fell more than 2 per cent. In Taiwan, TSMC slipped 0.34 per cent, while South Korea’s SK Hynix was down 1.62 per cent.

On Wall Street, Nvidia stock eased nearly 3 per cent to $193.16 in the previous session.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff