SoftBank's $5.8B Withdrawal Raises Questions About AI Growth, Causing Nvidia Stock to Tumble

Bitget App

Trade smarter

Bitget

News

Markets

SoftBank's $5.8B Withdrawal Raises Questions About AI Growth, Causing Nvidia Stock to Tumble

Bitget-RWA2025/11/13 21:36

By:Bitget-RWA

- SoftBank's $5.8B sale of its Nvidia stake triggered a 3.1% stock drop on Nov 11, 2025, signaling investor doubts about AI sector momentum. - The sell-off coincided with U.S. export restrictions to China, HBM supply delays, and AMD's $1T data-center market projections challenging Nvidia's dominance. - Analysts raised price targets to $230-$265 based on strong GB200 demand, but broader tech market declines highlighted risks in stretched AI valuations. - Upcoming Nov 19 earnings will test Nvidia's ability t

On November 11, 2025, Nvidia's stock experienced a significant drop after SoftBank Group sold its entire $5.8 billion holding in the AI chip giant, causing turbulence across the tech industry. The Japanese conglomerate's full divestment, revealed in late October, sparked speculation about whether its once-bold commitment to artificial intelligence was waning.

SoftBank's $5.8B Withdrawal Raises Questions About AI Growth, Causing Nvidia Stock to Tumble image 0

Nvidia shares slid by 3.1%

to close at $192.41 that day

, representing the steepest single-day loss in several months, even as its market value stayed at $4.85 trillion. This development highlighted increasing investor wariness about high valuations in the AI sector,

with both the S&P 500 and Nasdaq Composite also ending lower

amid broader market jitters.

This downturn continued a trend of volatility for

Nvidia

, whose stock has fluctuated by more than 5% on 19 separate days

in the last twelve months

. Experts pointed to several reasons for the decline: SoftBank's exit, rising geopolitical strains over U.S. chip export rules to China, and intensifying rivalry in the AI chip arena.

The U.S. recently barred Nvidia

from supplying modified Blackwell chips to Chinese buyers, which further dampened investor confidence. At the same time, competitors such as Advanced Micro Devices (AMD) announced intentions to contest Nvidia's leadership,

with AMD forecasting the data-center chip sector could hit $1 trillion

by 2030.

Even with these short-term headwinds, analysts remain guardedly positive. Rick Schafer of Oppenheimer increased his Nvidia price target to $265 from $225, while Christopher Rolland at Susquehanna maintained a $230 target, citing robust demand for Nvidia's GB200 AI products

as noted by Barrons

. Still, the broader retreat from high-growth tech stocks has added to the pressure. The Nasdaq dropped almost 2.5% on November 13, with all seven companies in the Magnificent Seven group seeing losses

according to Barrons

Investors are looking to Nvidia's November 19 earnings release for further insight. The company will need to prove ongoing demand for its Blackwell chips and address ongoing supply issues,

such as setbacks in high-bandwidth memory (HBM) output

. With a trailing price-to-earnings ratio of 56.71 and a forward P/E of 30.30, Nvidia continues to be a central focus for those weighing the long-term promise of AI against immediate uncertainties

as reported by Investing.com

---

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

- ALGO fell 16.57% QoQ amid market volatility and product transition challenges at Alargo. - Alargo replaced Akaroid with NHD, achieving 80% YoY sales growth through direct doctor engagement. - AXI's margin optimization doubled contribution per piece despite 60% volume decline from low-margin delistings. - ARCO Pharma's rebranding and scientific training aims to strengthen pharmacist relationships and market position. - Analysts note long-term margin potential but warn of short-term revenue risks from tran

Bitget-RWA•2025/11/14 05:34

BCH Drops 1.35% Today as Loan Expansion Slows and Profitability Faces Challenges

- BCH fell 1.35% in 24 hours amid weak loan growth and reduced inflation adjustment income, with 60% revenue tied to net interest income. - Institutional holdings rose 12.75% but shares held dropped 3.53%, as Bridge Builder increased exposure while Baillie Gifford cut holdings by 289.93%. - Goldman Sachs maintains Neutral rating with 0.70% upside, while backtesting shows mixed post-earnings performance with limited statistical significance from two data points.

Bitget-RWA•2025/11/14 05:34

ZEC drops 5.9% over 24 hours as significant institutional funds flow in

- Zcash (ZEC) fell 5.9% in 24 hours amid a 20.64% 7-day drop, but gained 768.62% over one year. - Cypherpunk Technologies acquired 1.25% of ZEC supply via a $58.88M Winklevoss Capital-backed investment, aiming to accumulate 5% total supply. - Tyler Winklevoss positioned Zcash as "encrypted Bitcoin ," emphasizing privacy-driven value transfer and potential to capture Bitcoin's market share. - Technical analysis shows ZEC breaking key support levels with RSI near neutrality, while institutional activity reve

Bitget-RWA•2025/11/14 05:16

LUNA Drops 2.7% Over 24 Hours as Overall Market Shows Signs of Weakness

- LUNA fell 2.7% in 24 hours to $0.0788, continuing a 12.29% weekly and 15.2% monthly decline. - Technical indicators show bearish momentum, with RSI below key support and MACD in negative territory. - The drop reflects broader market caution and waning investor confidence amid persistent risk-off behavior.

Bitget-RWA•2025/11/14 05:16