KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Shares of SoftBank Group Corp. tumbled as much as 10% in Tokyo trading on Wednesday after the tech conglomerate’s surprise sale of its entire Nvidia Corp. stake unnerved investors already wary of overheating valuations in the AI sector.
The stock hit a one-month low despite strong quarterly earnings and a planned 4-for-1 stock split. The Japanese firm said it offloaded its US$5.83 billion (RM24.13 billion) Nvidia holding to free up funds for new artificial intelligence investments — a move that investors saw as both strategic and unsettling amid ongoing questions about AI’s profitability.
Market Reaction
SoftBank’s exit from Nvidia — the most prominent chipmaker powering the AI boom — comes at a delicate moment. Nvidia’s shares slipped 3.9% overnight in New York, even after a 48% rally this year through Monday’s close.
The sale has reignited debate over whether the trillion-dollar spending spree by Big Tech — led by Meta, Alphabet, and others — will yield proportional returns.
“The value of the company fluctuates on the market’s assessment of the value of its investments,” said Keiichi Yoneshima, analyst at Citigroup. “SoftBank shares are likely to remain highly volatile, though expanding NAV could attract investors back.”
Inside SoftBank’s AI Strategy
Founder Masayoshi Son has been paring long-held stakes to bankroll a new wave of AI-related ventures, including the Stargate data center project with OpenAI and Oracle Corp.
During SoftBank’s earnings call, CFO Yoshimitsu Goto declined to say whether AI markets were in a bubble but defended the sale as a funding move, not a reflection of Nvidia’s outlook.
“We sold Nvidia so that the capital can be utilised for our financing,” Goto said.
SoftBank previously sold its Nvidia position in 2019, then reentered in 2020, investing around US$3 billion by March this year — just before the ChatGPT-driven rally sent Nvidia’s valuation soaring. The company now enjoys a massive paper gain after Nvidia’s US$2 trillion market-cap surge since then.
Earnings and Outlook
Despite the stock drop, SoftBank reported net income of ¥2.5 trillion (RM66.9 billion) for its fiscal second quarter — far exceeding analyst estimates of ¥418.2 billion.
The company also disclosed that its investment in OpenAI had risen US$14.6 billion in value, bolstering its balance sheet.
Still, analysts warn of turbulence ahead as SoftBank doubles down on AI at a time when investor sentiment toward the sector is showing early signs of fatigue.
Key Takeaways
SoftBank shares plunged up to 10% after the firm announced its US$5.8 billion Nvidia sale.
The move, aimed at funding AI expansion projects, comes amid growing concerns about AI overvaluation.
Nvidia shares fell 3.9% overnight, reflecting market unease.
Despite strong earnings and a 4-for-1 stock split, volatility is expected to persist.
SoftBank continues to pivot from traditional tech holdings toward AI infrastructure investments, including partnerships with OpenAI and Oracle.
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