CNBC Daily Open: SoftBank doubles down on AI amid warnings from ‘Big Short’ investor

SoftBank Sells Entire Stake in Nvidia — But Not for the Reasons You Might Think

In its earnings statement released Tuesday, SoftBank revealed that it had sold 32.1 million Nvidia shares in October for $5.83 billion. At first glance, this move might suggest that SoftBank is growing uneasy with Nvidia’s high valuations. Given SoftBank’s history—most notably its $18.5 billion investment in WeWork that eventually valued the company at only $2.9 billion—some investors might interpret this sale as a sign of the group tempering its usual optimism.

Adding to concerns around AI investments are recent comments by Michael Burry, the investor famous for betting against subprime mortgages before the 2008 financial crisis. On Monday, Burry posted on X that major artificial intelligence companies are “understating depreciation” of AI chips, which “artificially boosts earnings—one of the more common frauds of the modern era.” However, CNBC could not independently verify whether companies are engaging in such practices.

SoftBank’s Reason Behind the Nvidia Stake Sale

Despite the speculation, this does not appear to be SoftBank’s concern. A person familiar with the group’s sale told CNBC that the decision had nothing to do with AI valuations. On the contrary, the cash from offloading Nvidia shares will be redirected towards bolstering SoftBank’s $22.5 billion investment in OpenAI, according to the source.

Michael Burry promised to reveal “more details” on November 25 and encouraged readers to “stay tuned.” Whether this will influence SoftBank’s outlook remains to be seen.

Market Highlights

– The Dow Jones Industrial Average closed at a fresh high on Tuesday.
– The S&P 500 also rose, while the Nasdaq Composite retreated as investors rotated out of tech stocks.
– Europe’s Stoxx 600 rallied 1.28%, with the UK’s FTSE 100 hitting a record high.

Other Notable Developments

– **SoftBank also sold part of its stake in T-Mobile**, continuing its portfolio adjustments.
– **AMD forecasts strong growth**, with CEO Lisa Su projecting 35% annual revenue growth over the next three to five years, driven by “insatiable” demand for AI chips. The company also anticipates gross margins between 55% to 58%, surpassing analyst expectations.
– **U.S. trade update:** At the swearing-in ceremony of U.S. Ambassador to India Sergio Gor on Monday, President Trump hinted at possible tariff reductions, stating that he “will be bringing the tariffs down.” The White House is also reportedly working with Switzerland on a deal to lower tariffs.
– **Pop Mart shares surge:** The Chinese firm’s shares have risen more than 270% year to date, fueled by the popularity of its Labubu dolls. However, Bernstein analysts caution that it might be time to “stop collecting” Pop Mart stock.

Contributors: CNBC’s Yun Li, April Roach, and Dylan Butts.

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This strategic repositioning shows SoftBank’s confidence in AI’s future potential, particularly through its significant investment in OpenAI, even as it moves away from direct Nvidia holdings.
https://www.cnbc.com/2025/11/12/cnbc-daily-open-softbank-doubles-down-on-ai-amid-warnings-from-big-short-investor.html