SoftBank Group's $5.8 billion sale of its Nvidia stake jolted stock markets on Tuesday, stoking fears that the frenzy around artificial intelligence may have peaked, especially after recent warnings from Wall Street bank chiefs and a famed short seller.

Nvidia stock slides over 3% as SoftBank’s stake sale and split analyst targets fuel debate over the chip giant’s AI-driven valuation.

Several big investors, including State Street, Bridgewater Associates, and T. Rowe Price, have sold part of their NVDA stakes in the last few quarters. This is mostly because they want to keep their portfolios from being too concentrated following Nvidia’s spectacular run.

Asia-Pacific markets mostly climbed Wednesday, after Wall Street traded mixed on hopes of the U.S. government shutdown ending and a pullback in AI stocks.

US saw updates from Nvidia’s stake sale, Wendy’s closures, ADP jobs data, Trump’s remarks, CFPB ruling, and AMD’s AI outlook.

SoftBank has exited Nvidia for about €5.4bn and, after reporting a €14bn quarterly profit, said it will redirect capital into AI investments.View on euronews

SoftBank’s exit comes at a time when the market is increasingly questioning whether the billions flowing into AI infrastructure will translate into sustainable returns.