Shares of Nvidia are down 1.9% in the pre-market and helping to drag broader S&P 500 futures down by 0.2%.
The trigger -- ostensibly -- is that SoftBank disclosed that it sold its entire stake in Nvidia worth $5.83 billion in October.
First of all, let's do the math on that: It's 0.1% of the company. It's a drop in the bucket.
Second of all, SoftBank famously held 4.9% of Nvidia from 2017-2019. They paid about $4 billion for the 4.9% stake and that would be worth $237 billion today. Of course, they sold it in January 2019 in a trade that will haunt Masayoshi Son forever.
All that said, there are plenty of reasons to sell NVDA. A tech washout at some point in 2026 is inevitable as either spending slows, competitive pressures emerge or there is a macro shock due to the midterms or whatever else Trump does.
