SoftBank Shares Drop as Nvidia Stake Sale Reveals Deep AI Funding Demands

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SoftBank Group (9984.T) shares plunged as much as 10% on Wednesday, after the company’s $5.8 billion sale of its Nvidia stake raised questions about how it will finance its massive new AI investment spree, including major commitments to OpenAI.

The Japanese conglomerate is preparing to fund a $22.5 billion follow-on investment in OpenAI, alongside a $6.5 billion acquisition of chipmaker Ampere and a $5.4 billion purchase of ABB’s robotics division. Analysts estimate these moves bring SoftBank’s recent spending commitments to over $41 billion.

Despite holding 4.2 trillion yen ($27.9 billion) in cash at the end of September, CreditSights analyst Mary Pollock said the group’s short-term funding needs remain “substantial.” She added that SoftBank will likely need to “be proactive” in sourcing additional liquidity to sustain its AI push.

The selloff also reflects investor concerns that tech valuations are overstretched, even as SoftBank doubles down on its “all-in” strategy for artificial intelligence. Founder and CEO Masayoshi Son, long known for his high-risk investing style, remains confident that AI will define the next era of growth.

“The Nvidia position was large, liquid, and easy to monetize,” said Rolf Bulk, analyst at New Street Research, noting that SoftBank likely sees more upside by reallocating funds toward OpenAI.

SoftBank’s shares, which had quadrupled between April and October, closed the day down 3.46% after paring earlier losses. Nvidia and Arm Holdings, the chip designer SoftBank controls, also slipped around 3% overnight.

To fuel its aggressive investment agenda, SoftBank has raised funds through bond issuances and multi-billion-dollar loans, including an $8.5 billion facility for OpenAI and a $6.5 billion bridging loan for Ampere. CFO Yoshimitsu Goto said the group’s debt ratio of 16.5% is “actually a bit too safe,” signaling room for more leverage.

SoftBank’s Vision Fund CFO Navneet Govil defended the spending, arguing that today’s AI sector is fundamentally different from past speculative bubbles: “AI companies are generating meaningful revenues. The capital expenditure boom is driven by real demand.”

Circle Tops Profit Estimates as Stablecoin Circulation Surges

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Circle (CRCL.N) reported stronger-than-expected third-quarter profits on Wednesday, driven by surging adoption of its flagship USDC stablecoin and higher reserve income amid expanding global use of digital dollars.

The company said USDC’s circulation more than doubled from a year earlier to $73.7 billion, as stablecoins — digital tokens backed by safe assets such as U.S. Treasuries — continue to gain traction with traditional financial institutions and regulators worldwide.

Circle earned an adjusted 36 cents per share, easily beating analysts’ expectations of 22 cents, according to LSEG data. Total revenue and reserve income rose 76% year-on-year to $739.8 million, surpassing forecasts of $700.5 million.

The gains come as the Trump administration’s Genius Act, introduced earlier this year, set the first clear legal framework for U.S. dollar-backed stablecoins, positioning the United States to become a leader in regulated digital payments.

Despite the upbeat earnings, Circle’s stock fell about 3% premarket after it raised its full-year operating expenses forecast to between $495 million and $510 million, citing new investments in platform growth and rising payroll taxes.

The company also faces the prospect of lower reserve income if interest rates decline, prompting efforts to diversify revenue streams through innovation. Earlier this year, Circle launched Arc, a new public blockchain designed to handle stablecoin transactions and support cross-border payments, merchant services, and DeFi integrations.

Fear of Trump’s Immigration Raids Pushes Hispanic Shoppers Toward Online Buying

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In Newark’s largely Latino Ironbound district, business owner Rosa Ludena watches customers vanish from her electronics shop. For over two decades, she has sold phone accessories to her community, but now the aisles are quiet.
“People are afraid to go out because of immigration raids,” says Ludena, who emigrated from Ecuador in 1999.

Since President Donald Trump renewed his hardline immigration crackdown, high-profile raids — from Home Depot parking lots to farms and factories — have shaken Hispanic communities nationwide. A January raid on a fish market near Ludena’s store still haunts local shoppers.

The impact extends far beyond Newark. Flea markets, small retailers, and national brands alike report falling in-store traffic as Hispanic consumers retreat to online shopping, fearing ICE patrols and public scrutiny. “It’s unsurprising given concerns over changing immigration policies,” said Mark Mathews, chief economist at the National Retail Federation.

Retail surveys by Kantar show store visits by Hispanic shoppers fell nearly 15% between April and June, while non-Hispanic visits dropped only 4.5%. Online shopping, meanwhile, reached record highs — 60% of Hispanic consumers shopped online last quarter.

For small business owners, the shift is devastating. “These aren’t big companies with websites,” said Oliver de la Garza of Proyecto Azteca, a nonprofit in Texas. At an Alamo flea market, he said, vendor numbers have halved since a June raid.

Major brands are noticing too. Heineken and JD Sports both reported sales declines among Hispanic customers. Shoe Palace, which caters to Latino shoppers, saw foot traffic collapse earlier this year. “You can see definitively the impact of immigration policy,” said JD Sports CEO Régis Schultz.

Large retailers like Walmart — whose online sales jumped 26% this summer — are benefiting from the trend, while smaller stores lacking e-commerce channels are losing customers fast.

Even legal residents say they’re nervous. “There’s fear of being watched or harassed,” said Julie Craig, a Kantar vice president.

Hispanic Americans, who represent 19% of the U.S. population, have a projected $2.8 trillion in buying power next year — but fear, not spending potential, is shaping how they shop.