Tonight's Highlights | SoftBank CFO Explains Nvidia Dump iPhone Sales Boom Confirmed  

As SoftBank's Nvidia exit draws attention, plus emerging cloud provider CoreWeave lowers revenue guidance, most tech giants weak pre-market. AI leader Nvidia, storage bull SanDisk down over 2%.  

 

As of publication, Nasdaq 100 futures (2512 contract) down 0.5%, S&P 500 futures down 0.18%, Dow futures up 0.04%.  

 

(Nasdaq daily chart, source: TradingView)  

 

Yesterday breakthrough on U.S. government shutdown, Nasdaq up over 2% single day, biggest since May. Senate now voted to approve temporary funding bill, House as soon as Wednesday vote to end this round shutdown.  

 

Monday's pre-market buzz: Famous tech investor SoftBank in latest earnings disclosed "cleared Nvidia," raising $5.83 billion cash. SoftBank also trimmed some T-Mobile stake for $9.17 billion. SoftBank last cleared Nvidia in 2019, $4 billion investment netted $3 billion, but if not sold then, would have over $240 billion floating profit today.  

 

SoftBank CFO Yoshimitsu Goto at earnings briefing: "Due to large-scale OpenAI investment, so raised funds through and put to use."  

 

Per prior financing agreement, as OpenAI completes restructuring, SoftBank to invest additional $22.5 billion in December.  

 

April-September this year, SoftBank investment gains ¥3.92 trillion, of which OpenAI valuation rise ¥2.15 trillion. Goto also said whether AI investment "bubbly" can't answer now, important to ensure financial stability while not missing investment opportunities.  

 

As for timing Nvidia cash-in October involving valuation judgment, Goto declined comment, only said adjusting asset allocation is investment company's fate.  

Other Market News  

Sony raises FY guidance Confirms iPhone sales exceed expectations hot  

 

Thanks to significant increase in high-end mobile camera shipments, Sony Group up over 5% Tuesday after earnings, raised FY performance guidance. Company in earnings said report quarter mobile image sensor sales significantly above last year same period, main reason "major customer used larger image sensors in new products, shipments also above company expectations."  

 

To add second rear camera? iPhone Air gen 2 reportedly delayed  

 

Tuesday's latest news shows, due to iPhone Air sales after launch below expectations, Apple notified suppliers to pull originally planned next fall second-gen model from schedule, no new date provided. Insiders say Apple redesigning this ultra-thin model, may release spring 2027 with iPhone 18 standard and iPhone 18e, most notable change possibly adding second rear camera.  

 

Intel chief AI officer jumps to OpenAI  

 

Intel chief technology and AI officer Sachin Katti announced resignation, to join OpenAI building general AI compute infrastructure. He also second important AI exec leaving Intel this year. Earlier, head of Intel data center and AI business Justin Hotard left spring this year to become Nokia CEO.  

 

LeCun reportedly leaving Meta to start up  

 

Tuesday's latest news says Turing Award winner, seen as modern AI pioneer Yann LeCun already told Meta colleagues he will leave company in coming months. Insiders say LeCun in talks to fund new startup. This summer, Zuckerberg brought in 28-year-old data labeling firm Scale AI founder Wang Tao to lead newly formed superintelligence team, and asked LeCun to report to Wang Tao.  

 

AMD expected to outline AI business plans Tuesday  

 

AMD to hold Financial Analyst Day Tuesday, business heads expected to show future years business outlook and financial expectations. Besides MI400 series AI chips coming next year, AMD may discuss gaming chips and programmable chip business. AMD last held analyst day in 2022, this year's event starts 1 p.m. Eastern Time.