SoftBank's investment fund dumps entire $3.6B stake in Nvidia | Hacker News Reader

SoftBank's investment fund dumps entire $3.6B stake in Nvidia

cnbc.com

16 pointstrimbo4 comments

There is more to this sell off than simply Nvidia earnings report. With such a large investment, this is a fairly short duration to sell after, especially considering the gain for Softbank isn't as large as your would expect. Its difficult to speculate on why but losing faith in the long term potential of Nvidia being one of the leaders in compute for machine learnings seems shortsighted at this point.

They look at enough companies that I think they’re qualified to make this assessment

From an outside perspective, this seems really really short-sighted. Deep learning applications aren't compiled to run on AMD GPUs, and Google TPUs are still a pretty niche category AFAIK. NVIDIA is selling pickaxes during a gold rush, I can't help but feel NVIDIA's deep learning initiatives are gonna pay off, even if Chinese markets may be waning this year.

Possible that the hype around deep learning will dissipate as highly anticipated applications turn out to be more challenging than expected, technologists settle in for a long trek, and investors flee the space in search of easier returns. We've seen this happen before.

The real growth opportunity seems to be with Tegra. If we see a boom in autonomous vehicles and robotics, they're well positioned to profit. But we may not.

It also appears AMD has finally arrived at the correct strategy to challenge NVIDIA's datacenter moat with HIP (basically API compatibility with CUDA modulo trademarks). Does not mean they have mindshare or a desirable product line, but when you have a completely dominant market position that's baked into the stock price you have to consider every threat.

NVIDIA is a great company with great products that will do well regardless, just positing some reasons one might be short the stock apart from Chinese market considerations.

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