Nvidia shares fell 2% after Japanese technology company SoftBank Group Corp announced the sale of its entire stake in the chipmaker, which is about 32.1 million shares worth $5.8 billion.
SoftBank's decision put pressure on Nvidia, curbing the Nasdaq's rise even as the overall market remained stable.
SoftBank's sale of $5.8 billion worth of Nvidia shares has rattled markets and raised concerns that the euphoria surrounding artificial intelligence (AI) may have peaked.
The situation comes on the heels of a fresh warning from JPMorgan Chase CEO Jamie Dimon and a well-known seller.
In a quarterly report, the Japanese technology company said it had sold 32.1 million Nvidia shares it owned in October.
The move is aimed at funding broader AI initiatives led by SoftBank CEO Masayoshi Son, who has built his strategy around a big bet on OpenAI, the creator of ChatGPT.
SoftBank also sold $9.2 billion worth of T-Mobile shares, giving Son more money to pursue AI technology that rivals human intelligence.
Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said the cash flow boost allows SoftBank to bolster its confidence in large-scale AI applications and infrastructure, such as OpenAI, Oracle, and the Stargate project.
SoftBank shares have more than doubled this year on the OpenAI disclosure, underscoring the positive impact of the company's investment strategy in AI technology.
