Nvidia stock (NASDAQ: NVDA) slipped over 3% today as traders engaged in profit-taking and wrestled with lingering questions about artificial intelligence valuations. The pullback was sparked by headlines of SoftBank dumping its entire $5.

SoftBank has confirmed it sold its entire stake in Nvidia in October, offloading 32.1 million shares for $5.83 billion. The disclosure came Tuesday alongside the Japanese conglomerate’s latest earnings report.

Given the unprecedented level of demand Nvidia ( NVDA +1.77%) continues to witness from data centers for its graphics processing units (GPUs) and related services, the company is widely regarded as a measuring stick for the health of the artificial intelligence (AI) sector.

For years, Son has talked about SoftBank’s strategy to invest in the “computing platforms of the future,” including artificial intelligence. His firm amassed a reported $4 billion stake in Nvidia back in 2017, only to dump the shares in 2019.

Japanese tech giant SoftBank's shares slumped 6.6% Friday driven by the firm's sale all of its stake in the US chip giant Nvidia for $5.83 billion announced on Tuesday, and an overall concern regarding the overvaluation in the tech stocks.

SoftBank sold 32.1M shares for $5.83B to fund OpenAI. Second complete exit. Vision Fund posts $19B gain. What it means for investors.

SoftBank stock slid nearly 10% in the past five trading sessions following the company’s announcement that it had sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion.

The incredible value created by artificial intelligence is starting to reach every corner of the semiconductor industry.

Masayoshi Son, the 68-year-old CEO of SoftBank, has a mixed track record when it comes to massive, high-stakes investments.

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.