Updates with details on Adage investment changes, background on AI rally

By Suzanne McGee

PROVIDENCE, Rhode Island, Feb 17 (Reuters) - Adage Capital Partners said in its latest filing with the U.S. Securities and Exchange Commission that it trimmed its investments in some AI heavyweights in the fourth quarter of 2025, while Softbank Group Corp 9984.T reported it had dissolved its stake in Nvidia NVDA.O, a transaction the company first disclosed in November.

Adage disclosed small cuts to stakes in Microsoft MSFT.O, Alphabet GOOGL.O and Amazon AMZN.O, as well as Nvidia. Adage also boosted its stake in Oracle ORCL.N by about 19% to 1.87 million shares, valued at about $365 million.

The Boston-based investment firm did not immediately respond to a request for comment about the changes in its portfolio.

Softbank's $5.8 billion Nvidia stock sale took place in October, it said when it announced the transaction. Softbank liquidated the position to help raise funds for further investments in ChatGPT creator OpenAI.

After optimism about AI fueled a multi-year rally in U.S. stocks, investors in recent months have worried about whether heavy spending on the emerging technology will generate sufficient returns to justify lofty valuations.

Nvidia has fallen about 7% since November 11, when Softbank disclosed it sold its shares in the world's most valuable chipmaker. Nvidia is set to report its quarterly results on February 25, and analysts on average expect a 67% jump in revenue, according to LSEG data.

Softbank's and Adage's 13-F filings compare their holdings as of December 31 with those as of September 30.

These filings, due within 45 days of the end of each fiscal quarter, capture institutional investor positions as of that date but do not reflect position changes that may have taken place so far in the first quarter.

(Reporting by Suzanne McGee, and additional reporting by Noel Randewich in San Francisco; Editing by Jan Harvey and Cynthia Osterman)