Friday, December 14th 2018
NVIDIA's Stock Has Been Plunging Since October; Softbank Reported to be Looking for a Way Out
The stock markets are the financial equivalent of a fickle mistress. Just ask NVIDIA. The company has, in recent months, introduced their Turing architecture and derived products - a move NVIDIA deemed such a significant leap over its previous generations that it prompted a change from the GTX of old to a new RTX moniker. The company's latest financial results also reported a 21% increase in revenue YoY, and a 2% increase relative to the last quarter. Despite this and increased cash dividends being delivered to the hands of investors, festive must not be NVIDIA's mind right now.
The dive, which practically halved the company's stock valuation since October, moving from an all-time peak of $289.36 on October 1, to just under $149 (a 48.8% decline). This fall has mostly been attributed to the crypto slump, which left NVIDIA with excess inventory in its channels and may have pushed some of the company's plans for their 2000 series over the edge - particularly in the midrange graphics department. However, overall reception of their RTX 2000-series cards wasn't all that glamorous - and that surely moved investors' minds as well. Now, it appears that Softbank, one of the tech world's giants, is pulling its weight from NVIDIA and racking in a $3 billion profit, as is being reported by numerous outlets. Apparently, the deal isn't finalized as of writing, but that must be rocking NVIDIA's boat all the same.
Sources:
Bloomberg, via TechSpot
71 Comments on NVIDIA's Stock Has Been Plunging Since October; Softbank Reported to be Looking for a Way Out
Conclusion: kill crypto mining with extreme prejudice
If Nvidia had been slowly pushing developers to pick up Ray Tracing then at least people who bought RTX cards from the moment they were released wouldnt feel like theyve been short changed.
2080 came out and no games supported this wonderful amazing feature that Nvidia had been harping about and at best the only software support was a benchmark or a tech demo...
they should of held back until software support was more substantial. People will always remember the first release of the RTX in a negative light as it being ludicrously expensive compared to the previous generation and not really out performing the previous generation either.
Like my manager always says.... you can do a million things correctly and nobody will remember it. but the moment you do one thing wrong, they will remember that one thing forever.
EDIT: and Softbank is an investment firm - they know when to ride and when to cash out. It's only a pointer to the demise of gfx card mining.
A couple of years back Softbank and several other tech giants have invested lots of money into AI and AI-related industries (through their Vision Fund, and with some help from Saudi's PIF).
Most of these fields conflict with what's NVidia been doing for the past few years.
So, even though Softbank owns 5% of NVidia, they are probably more content with "cutting losses" by selling NV stock at pretty much the same price of what they paid back in 2017, and trashing it even further on the stock market to get some freedom in pushing their own agenda in the field of AI.
www.forbes.com/sites/samshead/2018/08/06/softbank-billionaire-devoting-97-of-time-and-brain-to-ai/#23733d69537d
Crypto has little to do with this. BAD BUSINESS DECISIONS have everything to do with this.
If ever a company was in need of a good kicking, Nvidia is it.
In the grander scheme, the whole GPU boom impacted relatively few people. Only those too stoopid, too impatient, or didn't care. There were largely GPUs available at normal prices for much of the time if you made any sort of effort.
true,way I see turing is more like a card for developers to build on,though acceptable framerates can be managed with proper optimization as was seen in latest bf5 patch.
What Nvidia did, no matter how many "WTFs!" and "Greedy bastards!" I've personally exclaimed, was an attempt that really deserves an applause (even if it wasn't the most economically efficient route). Releasing the RTX cards broke that cyclical problem and left the ball entirely in the game/engine/renderer developers' field.
And I don't really think any early adopter of a cutting-edge tech that is clearly in its infancy should complain about being "short changed."
I think the writing is on the wall ,AI driven cars are a liability that wont end up happening for a while (since they drive like crap)and it's not soon enough to massage Nvidias investment into it.
Their out of consoles bar Nintendo and their liable for fecking Nintendo's security on that console (Nintendo love their security), i doubt Nintendo took the tab for the rework for switch 1b
Most web servers are making their own ai options Or their is something cheaper from someone else.
They flat out failed at Mobile, and can't sell enough tegras for TVs (sheild) to get rid of t2s
And they can only make arm core processors, but not better then Qualcomm for example or apple.
They've had time in a few of these markets, enough to count for a lead in them yet they didn't make enough of one.
A lot will just buy secondhand.