Nvidia Faces Pressure After SoftBank Exit

2 months ago

"Decliners on my list included Nvidia down 3%. And those shares took a hit after SoftBank sold its entire stake in the company for $5.83 billion to help bankroll AI investments. This sale coinciding with a growing debate about whether spending in big tech firms will actually produce commensurate returns. Expected spending surpassing a trillion dollars in the coming years. I get it. Uh they think they can have a better return outside of the company. And maybe that got some investors in the company concerned about Nvidia today."

Nvidia shares fell 3% as SoftBank's complete exit, worth $5.83 billion, raises concerns about the effectiveness of big tech spending in AI, prompting investor caution.

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