The Nasdaq Whale’s Nvidia Sale Smells Desperate: Shuli Ren

Masayoshi Son, who runs the world’s biggest venture capital fund, is making waves again.

His SoftBank Group Corp. has sold its entire stake in Nvidia Corp. for $5.8 billion, renewing concerns that tech valuations have become frothy. This transaction marks a sharp U-turn for Son. As recently as the March quarter, SoftBank was busy buying up the AI chip designer’s shares. Nvidia’s stock has risen 44% this year and is now trading at a 42 times earnings, versus around 35 times a year ago.

While it’s healthy to ask if an AI bubble is forming, it would be premature to consider ...