Market Update: Tech Sector Retreats After SoftBank's Nvidia Sale

Nvidia (NVDA) shares dropped about 1.4% after SoftBank confirmed the sale of its remaining 100 million shares for $5.83 billion, completing its strategic shift away from the AI chip bellwether. The move, led by CEO Masayoshi Son, crystallizes substantial gains—Nvidia stock has soared in recent years—and illustrates SoftBank's pivot toward other AI investments and data center infrastructure. Despite the windfall, the sale signals caution at elevated valuations, with Nvidia still trading at around 48x forward earnings, even as analysts forecast 60%+ EPS growth for fiscal 2026.​

Meanwhile, CoreWeave (CRWV), a high-profile GPU cloud provider that listed in September, tumbled 14% after slashing its 2025 revenue guidance to $5.05–$5.15 billion, down from previous estimates. The company’s Q3 results impressed, with revenue surging 115% year-over-year to $1.36 billion. However, management cited delays in getting third-party powered-shell data centers online, postponing $100–$200 million in Q4 revenue until 2026. CEO Michael Intrator stressed that affected contracts were extended rather than lost, and highlighted a near doubling of its backlog to over $25 billion, including new mega-deals with OpenAI ($6.5B) and Meta ($14B).​

The revised outlook underscores execution risk in the battle for AI infrastructure supremacy. With annual capital expenditures set to hit $12–$14 billion for 2025 and potentially double in 2026, CoreWeave’s aggressive buildout will test investor patience amid market wariness about negative free cash flow.

US Government Shutdown Nears Resolution

Risk appetite appeared fragile as Congress moved closer to ending its historic, 38-day government shutdown. The Senate passed a bipartisan funding bill late Monday, with the House set to vote Wednesday. Stocks had bounced sharply on shutdown resolution hopes Monday, only to see gains pared Tuesday amid procedural uncertainty and a backlog of pending economic data. Once the government reopens, crucial reports—nonfarm payrolls, CPI, and PPI—will be released in rapid succession, likely stoking market volatility.​

Economists anticipate Friday’s October jobs print to show 180,000 new positions and an unchanged unemployment rate of 4.1%. Consensus projects forward S&P 500 earnings growth at 16.2% year-over-year for Q4, providing a buffer against macro headwinds.

Bitcoin and Oil React to Geopolitics

Bitcoin (BTC) reversed below $103,200 after Monday’s 4% rebound, caught between conflicting economic signals. Uncertainty over President Trump’s proposed “tariff dividend” checks and hawkish Fed remarks on delaying rate cuts until Q2 2026 weighed on sentiment. In commodities, WTI crude oil advanced to $60.97 per barrel, up 2.1%, as new US sanctions targeted Russian refiners and disruptions resurged on Iraq’s Kurdistan pipeline. OPEC+ confirmed a 411,000 bpd December production hike, but ongoing supply risks overshadowed China’s softening industrial numbers.

Bottom Line

The AI infrastructure story remains robust, illustrated by strong order books at Nvidia and CoreWeave, but markets are demanding flawless execution. Seen through the lens of SoftBank’s cautious disposition and CoreWeave’s capacity snags, dips in high-conviction AI names may create buying opportunities for long-term investors. Near-term, however, volatility will persist as supply chain and macro uncertainties dominate.