SoftBank is selling its entire stake in Nvidia — but not for the reasons you might think.

In its earnings statement released Tuesday, the Japanese group said that it had sold 32.1 million Nvidia shares in October for $5.83 billion.

At first blush, this could be read as a sign that Nvidia’s high valuations are causing SoftBank some unease. And if SoftBank — which infamously pumped $18.5 billion into WeWork only to value it at $2.9 billion eventually — is tamping down on its usual optimism regarding its investments, then retail traders should probably pay attention.

Adding to such worries are comments by Michael Burry — who bet against subprime mortgages before they caused a whole financial crisis in 2008 — on major artificial intelligence companies.

Burry wrote Monday in a post on X that those firms are “understating depreciation” of AI chips, which “artificially boosts earnings — one of the more common frauds of the modern era.”  CNBC could not independently confirm that companies were practicing this.

This doesn’t seem to be SoftBank’s concern, however. A person familiar with the group’s sale told CNBC that it had nothing to do with AI valuations. On the contrary, cash from offloading Nvidia chips will be redirected to SoftBank’s $22.5 billion investment in OpenAI, the person said.

Burry said in his post that he will reveal “more details” on Nov. 25, and exhorted readers to “stay tuned.” That might not be enough enticement for SoftBank CEO Masayoshi Son.

— CNBC’s Yun Li, April Roach and Dylan Butts contributed to this report.

The Senate Agriculture Committee has released a draft of its portion of a much-awaited digital assets market structure bill — a critical step toward accelerating institutional and retail adoption of cryptocurrencies. 

Unveiled on Monday by Agriculture Chair John Boozman, R-Ark., and Sen. Cory Booker, D-N.J., the bipartisan discussion draft lays the groundwork for creating guardrails for the crypto industry in the U.S. It also establishes guidelines for institutions that want to work with digital assets, from bitcoin and ether to tokenized financial instruments.

“This is the most consequential roadmap for how an institution is going to integrate digital assets into their business,” Cody Carbone, CEO of crypto trade association Digital Chamber, told CNBC. “It’s like the best possible step-by-step of what type of compliance rules requirements they would need to follow to work with crypto.”

Here are five key takeaways from the discussion draft.

AMD CEO Lisa Su said on Tuesday that the company’s overall revenue growth would expand to about 35% per year over the next three to five years, driven by “insatiable” demand for artificial intelligence chips.

Su said that much of that would be captured by the company’s AI data center business, which it expects to grow at about 80% per year over the same time period, on track to hit tens of billions of dollars of sales by 2027.

“This is what we see as our potential given the customer traction, both with the announced customers, as well as customers that are currently working very closely with us,” Su told analysts.

Ultimately, Su said that AMD could be able to achieve “double-digit” share in the data center AI chip market over the next three to five years.

AMD shares fell 3% in extended trading.

The AI chip market is currently dominated by Nvidia, which has over 90% of the market share, according to some estimates, and which has given the company a market cap of over $4.6 trillion, versus AMD’s roughly $387 billion valuation.

AMD is holding its first financial analyst day since 2022, as the company has found itself at the center of a boom in data center spending for AI.

While companies are spending hundreds of billions of dollars in total on graphics processing unit (GPU) chips to build and power artificial intelligence applications like OpenAI’s ChatGPT, they are also looking for alternatives to increase capacity and control costs. AMD is the only other major developer of GPUs aside from Nvidia.

In October, AMD announced a partnership with OpenAI in which it would sell the AI startup billions of dollars in its Instinct AI chips over multiple years, starting with enough chips in 2026 to use 1 gigawatt of power.

As part of the deal, OpenAI could end up taking a 10% stake in the chipmaker. Su also highlighted long-term deals with Oracle and Meta on Tuesday.

AMD shares have nearly doubled so far in 2025.

OpenAI is also helping AMD set up its next-generation systems based around its Instinct MI400X AI chips, which ship next year.

AMD has said that its chips will be able to be assembled into a “rack-scale” system where 72 of its chips work together as one, which is essential for running the largest AI models.

If AMD succeeds at its rack, it will catch up with Nvidia’s AI chips, which have been offered in rack-scale systems for three product generations.

Su said that the company now sees the total market for AI data center parts and systems hitting $1 trillion per year in 2030, representing 40% annual growth per year. AMD reported $5 billion in AI chip sales in its fiscal 2024.

That’s up from the company’s previous forecast of a $500 billion market in 2028 for AI chips. But the updated AMD figure also includes central processors (CPU), an important kind of chip that sits at the heart of a computer, but isn’t a pure AI accelerator like the GPUs made by Nvidia and AMD.

AMD’s Epyc CPUs are still the company’s most important product by sales. It primarily competes with Intel and some smaller Arm-based processors in the CPU market. AMD also makes chips for game consoles, networking parts, and other devices.

On Tuesday, although AMD focused much of its focus on its growing AI business, it told shareholders that its older businesses were growing too.

“The other message that we want to leave you with today is every other part of our business is firing on all cylinders, and that’s actually a very nice place to be,” Su said.