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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.”

AMD Shares Jump After Company Sets $100 Billion Data Center Revenue Target

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Advanced Micro Devices (AMD) saw its shares climb nearly 5% in premarket trading on Wednesday after the company unveiled ambitious long-term growth goals, including a plan to reach $100 billion in annual data center revenue within five years by taking a larger share of the booming AI chip market from rival Nvidia.

Speaking at an investor event in New York, CEO Lisa Su said AMD expects the market for data center chips to expand to $1 trillion by 2030, driven by AI adoption and stronger software integration.

To capitalize on that opportunity, AMD is preparing to roll out its next-generation MI400 chips and the Helios rack system in 2026. These products are part of the company’s broader strategy to compete more aggressively in AI computing, an area dominated by Nvidia.

“AMD’s success will come from being better than NVIDIA on whatever metrics matter most to customers,” analysts at Morgan Stanley said, adding that factors like power efficiency, component availability, and performance will determine leadership in what they called a “winner-takes-most” market.

At the event, AMD projected 35% annual growth for its overall business and 60% annual growth in its data center segment over the next three to five years. Chief Financial Officer Jean Hu said the company also aims for earnings of $20 per share within that timeframe, compared to LSEG’s 2025 estimate of $2.68 per share.

While analysts praised AMD’s bold targets, some cautioned about execution challenges, potential AI spending slowdowns, and supply chain constraints.

AMD shares have already gained 97% this year and are up 16% since October 6, when the company announced a partnership with OpenAI.

Foxconn Sees AI Boom Driving 2026 Growth, Hints at OpenAI Collaboration

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Foxconn, the world’s largest contract electronics manufacturer and key supplier to Apple and Nvidia, projected strong growth from artificial intelligence (AI) demand heading into 2026 — and teased a major announcement with OpenAI next week.

Chairman Young Liu told investors on Wednesday that the AI industry was only in its early stages and would soon become a central driver of global technology growth.
“Judging from what we see now, I am very optimistic about the AI market next year,” Liu said during the company’s quarterly earnings call. “The development of AI is still just beginning.”

Foxconn’s cloud and networking division, which includes AI server manufacturing, has now surpassed its consumer electronics segment — which includes iPhones — for the second consecutive quarter.

The company expects significant year-on-year revenue growth in the fourth quarter, with AI server sales continuing to rise quarter-on-quarter. Third-quarter profit jumped 17% to T$57.67 billion ($1.89 billion), beating analyst expectations.

Liu also hinted at an OpenAI-related announcement to be revealed during Foxconn’s annual Tech Day in Taipei next week, but declined to provide further details. OpenAI has not yet commented on the matter.

Foxconn — formally known as Hon Hai Precision Industry — has benefited from a global data center expansion led by Amazon, Microsoft, and Google, as they ramp up investments in AI infrastructure.

Beyond AI, Foxconn continues to invest in electric vehicles (EVs), despite recent challenges in its EV manufacturing ventures in the U.S.

So far this year, Foxconn’s shares have risen 36%, outperforming Taiwan’s broader market index, which is up 21%.