Nvidia share price: AI giant stock jumps, Japan's SoftBank sells its shares in Nvidia for $5.8 billion

Nvidia share price was up in after hours trading. This comes as Japanese technology company SoftBank Group Corp. said Tuesday that it has sold all the Nvidia Corp. shares that it owned for $5.83 billion, while it reported higher than expected profit in the first half of this fiscal year. SoftBank stocks, which have surged over the past year to about double what they were worth, added nearly 2 per cent on Tuesday.

On Monday, Nvidia was by far the strongest force lifting the market and leaped 5.8 per cent. It was a powerful rebound after Nvidia and other winners of the frenzy around artificial-intelligence technology led last week’s drop. Critics say their stock prices shot too high and too fast in the AI mania, drawing comparisons to the 2000 dot-com bubble that ultimately burst.

Nvidia-SoftBank Stocks

Tokyo-based SoftBank Group Corp. said it sold the stake in Nvidia in October.

SoftBank reported its profit in April-September soared to almost triple what it was a year earlier. Its sales for the six months edged up 7.7 per cent to 3.7 trillion yen ($24 billion), it said.

SoftBank's fortunes tend to fluctuate because it invests in a range of ventures, including through its Vision Funds, But for its latest results, its investments in OpenAI proved lucrative, a company official told reporters.

The group’s founder, Masayoshi Son, has recently focused ambitiously on the potential of AI.

SoftBank has also invested in Arm Holdings and Taiwan Semiconductor Manufacturing Co. Both companies, which produce computer chips, have benefitted from the growth of AI.

Taiwan Semiconductor Manufacturing Co., which makes chips for Nvidia and other companies, saw its stock that trades in United States rise 3.1 per cent after reporting that its revenue climbed nearly 17 per cent in October from a year earlier. While such growth is strong compared with other companies, it’s a slowdown from TSMC’s earlier performance.

Another AI darling, Palantir Technologies, jumped 8.8 per cent for the biggest gain in the S&P 500. That helped it recover some of its loss since it delivered a profit report last week that topped analysts’ expectations.

FAQs

Q1. How has Nvidia share price performed?
A1. On Monday, Nvidia was by far the strongest force lifting the market and leaped 5.8 per cent. It was a powerful rebound after Nvidia and other winners of the frenzy around artificial-intelligence technology led last week’s drop. Critics say their stock prices shot too high and too fast in the AI mania, drawing comparisons to the 2000 dot-com bubble that ultimately burst.

Q2. What is full form AI?
A2. The full form of AI is Artificial Intelligence.