12:33 PM EST, 11/11/2025 (MT Newswires) -- Nvidia's ( NVDA ) stock was tumbling Tuesday as SoftBank Group sold its entire stake in the chipmaker, while markets evaluated investor Michael Burry's claims that some of the technology heavyweights may be artificially boosting their earnings.

Investors have bet big on AI names, driving tech valuations higher, though some analysts are concerned that the AI spending boom may be a bubble.

The Japanese investment company offloaded its holding of 32.1 million shares in Nvidia ( NVDA ) for about $5.8 billion last month, SoftBank said in its fiscal second-quarter earnings presentation.

"We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength," SoftBank Chief Financial Officer Yoshimitsu Goto said during an investor presentation, according to CNBC.

Nvidia's ( NVDA ) shares declined 3.6% in midday trading. The stock came under pressure last week as valuation concerns around AI names intensified following Burry's disclosure of bearish bets on Nvidia ( NVDA ) and Palantir Technologies (PLTR).

Nvidia's ( NVDA ) share price has gained 43% so far this year.

In a Monday post on the X platform, Burry alleged that hyperscalers, or large cloud service providers, are understating depreciation expenses by projecting a longer life cycle for chips than actually possible.

"Massively ramping (capital expenditure) through purchase of Nvidia ( NVDA ) chips/servers on a 2-3 (year) product cycle should not result in the extension of useful lives of compute equipment," Burry wrote in his post. "Yet this is exactly what all the hyperscalers have done."

The investor, who predicted the subprime-mortgage bubble burst that triggered the 2008 financial crisis, estimated that the accounting practice would understate hyperscalers' depreciation costs by about $176 billion from 2026 through 2028.

Burry claimed that Oracle (ORCL) and Meta Platforms ( META ) will have overstated their earnings by nearly 27% and 21%, respectively, by 2028.

Oracle and Meta didn't respond to a request for comment by MT Newswires, while a spokesperson for Nvidia ( NVDA ) declined to make a statement. Oracle's shares fell 2%, while Meta dropped 1.2%.

Price: 192.36, Change: -6.70, Percent Change: -3.36