Wednesday, February 6th 2019
Softbank Dumps its Entire NVIDIA Stock Worth $3.6 Billion
Japan's Softbank is known for far-sighted strategic investments in the technology industry. It shook Silicon Valley this morning by announcing a sale of its entire NVIDIA shareholding, valued on December 31 at JPY 39.8 billion, or USD $3.6 billion. It's the worst possible time to be NVIDIA's CFO, with the company having shed over 50 percent in value in the wake of the crypto-currency fall, mediocre demand for RTX 20-series graphics cards, and "deteriorating economic conditions in China" for the company. NVIDIA recently trimmed its outlook for revenues from gaming hardware sales by $500 million, eroding more share value. Softbank's tech portfolio now includes ARM Holdings, Uber, WeWork, Slack, among dozens of other tech startups.
Source:
Tom's Hardware
82 Comments on Softbank Dumps its Entire NVIDIA Stock Worth $3.6 Billion
next week: softbank buys AMD stock :))
Sounds like a serious tech-savvy company, with excessive knowledge in tech.
Or... maybe just a bunch of meme investors who try to ride cheap meme trends and occasionally invest in serious companies.
USD $3.6 billion seriously WTF. Sounds like they bought into the mining craze and now woke up that they were stupid. sure sweetie, it's all about Nvidia and not the mining craze. But AMD will save investors, it's such an unstoppable force even pakistani villagers are buying AMD stock
RTX cards priced too high for performance gains. That initial pricing makes them look great to the uninformed investor but it doesn't actually merit the products worth. Those prices, I dare say, are hindering sales potential - there are a lot of folk like me, whose price ceiling, for financial, or principled reasons was £/$700, give or take. As much as I can afford a £1200 gfx card, I voted with my wallet and said - screw that shit.
So, if you want to increase sales to the previous 'ti' generation, you drop prices. Yes, I'd buy a 2080ti for £/$700-800 - but, as soon as you lower prices, it spooks investors.
Nvidia saw a rock and a hard place and jumped right in. I've defended them a lot in the past (hey - they're a business, it's their prerogative to make money) but I really think JSH over-estimated the market demand and the fanbase for the RTX cards, at that hideous, arrogant pricing.
Well, at risk of sounding like an AMD fanboy - I say f*** 'em.
imo if Nvidia did lower the price of the 2080 Ti by a lot then it would be the same as admitting that they were drastically overcharging customers to begin with.
Let's guess - if huang made a decent GPU for 2080 Ti with, lets say, 400% gain, giving out over 150 FPS in any title in 4K (for example) - but asked 7000$ for it - it would've been fine??
Or lets stay landed - 75% increase over current 30%, but for 2000$?
WTF folks?
The important thing here is that they held NVDA for a long time and earned a lot. :)
They own completely things like ARM Holding (this includes ARM itself, you know, the one that designs architecture and cores used in most mobile devices) and that neverheard inventor work shop called Boston Dynamics - yes, that's the one that has made all those incredible robot dogs and similar which can run in any terrain etc. and have majority shares in countless big companies including carriers like Sprint. And no, they're no just one of the faceless investor companies, they actually started out as a electronics shop
Seems the Nvidia defence force already showed up to control the damage. :3
Just look at the Radeon 7 AMD card for 699. Have you seen the butthurt in the comment section of the TPU article? People really expected AMD to offer 2080 Ti tech for chump change. Stationary or increasing prices are natural and understandable in my opinion. I've been gaming on a 750 Ti for 4 years because I couldn't afford anything better. I still gamed and had lots of fun. Every manufacturer has cheaper cards
So, again - would you buy 2080 Ti for 2000$ if it proposed 100% gain over 1080 Ti?
The whole thing about pricing cards with 4 digits is ridiculous - it's not about price/perfomance. And then again, remember that for 1500$ they only propose lower tier gpu - 2500$ for "full" one (Titan rtx). I think thye do. It's just huang whining because he hoped for brilliant sales, so he can earn another billion with those margins - but somehting went wrong, and he earns "only" couple hundreds of $M, so he should wait additional two months to purchase that villa. My salary doesn't grow up at that rate they're increasing prices.
BTW, Apple did the same mistake and now can't sell new iPhones.