Nvidia’s $500 Billion Surge Meets a Wall of Doubt | US Crypto News

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee as the AI trade takes another wild turn. Nvidia’s $500 billion rebound has the market buzzing again, but behind the headlines, old believers are cashing out and skeptics are circling. Euphoria is back, but so are the warning signs.

Crypto News of the Day: Nvidia Adds $500 Billion—So Why Is SoftBank Selling and Burry Warning?

Nvidia’s record-breaking rebound has reignited the AI trade, adding half a trillion dollars in market value within just two trading days. Yet beneath the euphoria, major investors are pulling back, and the warnings are getting louder.

On Monday, Nvidia shares surged 5.8%, marking their largest daily gain since April. Between midday Friday and Monday’s close, the chipmaker added roughly $500 billion in market capitalization, equivalent to $43 billion per trading hour.

The rally came after a bruising week in which Nvidia had lost nearly $800 billion in value, highlighting how swiftly capital is rotating in and out of the AI trade.

“Nvidia added $500 billion in market cap in just 48 hours — entries into this historic run are scarce,” The Kobeissi Letter wrote. “Dip buyers are still out in full force.”

At a $5.1 trillion valuation, Nvidia now represents 8.5% of the S&P 500. This is larger than the sum of six of the index’s 11 sectors, including Materials, Real Estate, and Utilities.

Top 14 Components of the S&P 500 Index. Source: slickcharts

Its market cap also exceeds the combined value of the entire stock markets of Italy, Spain, the UAE, and the Netherlands.

SoftBank Cashes Out of Nvidia, But Not Out of AI

While retail investors continue to chase Nvidia’s ascent, SoftBank has quietly exited. The Japanese conglomerate sold its entire $5.83 billion Nvidia stake in October, alongside part of its $9.17 billion T-Mobile holding, as part of a strategy it called “asset monetization.”

The sales helped SoftBank report a ¥2.92 trillion ($19.1 billion) second-quarter profit, more than double last year’s, powered by $19 billion in Vision Fund gains largely tied to its OpenAI holdings.

The company also announced a 4-for-1 stock split and raised its interim dividend as CEO Masayoshi Son reaffirmed SoftBank’s “all-in” commitment to artificial intelligence, robotics, and data infrastructure.

SoftBank’s Chief Financial Officer Yoshimitsu Goto said the sales were meant to ensure “safe funding” as the firm prepares to deploy more than $30 billion in fresh investments this quarter.

“We want to provide a lot of investment opportunities while maintaining financial strength,” TradFi media reported, citing Goto.

Burry’s Fraud Warning Hits the AI Trade

However, not everyone is celebrating Nvidia’s meteoric rise. Michael Burry, famed for predicting the 2008 financial crisis, warned that hyperscalers and cloud giants may be artificially inflating earnings by extending the “useful life” of compute equipment.

In doing so, they allegedly reduce reported depreciation on AI infrastructure purchased from Nvidia and other suppliers.

Burry estimated $176 billion in understated depreciation between 2026 and 2028, which he claims could overstate profits at companies like Oracle and Meta by 27% and 21%, respectively.

Against these backdrops,some analysts warn that the math behind the AI boom does not add up. Ross Hendricks noted that to justify current AI valuations, global revenues would need to rise 20x in five years, or else capital expenditure would need to “collapse,” triggering a broad market correction.

Even so, momentum remains unstoppable, for now. Nvidia has become the defining stock of the AI era, its chips powering everything from data centers to large language models like OpenAI’s GPT series.

Yet the contrasting moves by SoftBank and warnings from Burry suggest the market’s biggest winner could soon face its toughest test.