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solumunus

Good point to cash out in my opinion. Extremely likely you can buy NVDA back cheaper in the future.

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$5.83B is too large to be a round trip. This is clearly an exit.

It's about 0.1% of the company.

Not nothing, for sure, but low enough that you can buy it back in a couple of months.

Why would they exit nvidia while still keeping upwards of $10B or whatever it is in OpenAI? Genuine question.

Nvidia is investing $100bn in OpenAI: https://nvidianews.nvidia.com/news/openai-and-nvidia-announc...

By purchasing OAI shares now, Softbank will probably be able to sell them to Nvidia at inflated prices later.

Nvidia current market cap is 4.84 trillion dollars. Yes, that's roughly 5 trillions of dollars. 5.83B is a rounding error.

In numbers, yes, a rounding error. In fact, SoftBank was one of Nvidia's backers, and whatever this sell means in the stock markets, this is a strong signal.

Market capitalization is not equal to real money. Take a look at how Elon Musk bought Twitter.

Daily trading volume is roughly 200m units at roughly 200 USD per stock which equals 40bn in daily trades. So 5bn isn't nothing but over the course of a month it isn't particularly much.

5 billion is massive. So much of that 40bn daily volume is just leverage. Sort of like the derivatives market, trillions of dollars in volume but nobody has that much money, it is just margin. So even if some trading firm losses 1-2 billion everyone panics and goes out of the market. It actually happened during the flash crash.

Also, I highly doubt they sold those 5bn of shares in any exchange. Most likely they did it over several weeks on a dark pool. Because again 5bn is massive and it would cause a crash in any open exchange.

Maybe. Could go up still, but a surprisingly conservative move for SoftBank.

But hey, maybe the market crashes tomorrow and this is seen as the best piece of timing ever seen, maybe it doubles in the next year.

In any case, you never lose by taking profit.

I’m not calling the top, but I think it’s incredibly likely we’ll see NVDA with a lower market cap than this in the next 3 years.

Softbank is likely in trouble and needs the cash or something.

SoftBank, according to its stock, is in the best shape ever.

https://finance.yahoo.com/quote/SFTBY/

And per the stock prices Tesla is worth more than every other car manufacturer ever, as well.

Until it wasn’t. Then it was again.

Either way, cash flow != stock price, not that SoftBank is in a ‘business’ that likely needs a lot of cash.

Maybe they just needed a new yacht?

Or need to bail out one of their investments?

Interesting - is buying SoftBank a proxy for owning some OpenAI at this point ?

I thought Nvidia was the proxy!

It's proxies all the way down

... to reverse proxy

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