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.

In its quarterly results, the Japanese tech investor, opens new tab said it had sold all the 32.1 million Nvidia shares it held in October to bankroll CEO Masayoshi Son’s sweeping AI push, built around his “all in” bet on ChatGPT-creator OpenAI.

SoftBank needs the proceeds for initiatives including the $500 billion Stargate project to expand U.S. data-center capacity and as much as $40 billion funding pledged to OpenAI, whose financing details were not given with the announcements.

But the timing of its sale deepened some investor doubts that valuations in the AI industry might have gotten ahead of fundamentals. Nvidia, opens new tab shares were down more than 2% in early trading, weighing on the benchmark S&P 500 index, opens new tab. Adding to the jitters was a revenue forecast cut from AI........

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