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Nvidia takes $1B stake in Nokia

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Re: Nvidia takes $1B stake in Nokia

#11
post #9

Microsoft (Elop and Ballmer) ruined Nokia's cell phone line that led to massive layoffs. Let's see if this investment leads to the final elimination of an EU tech company. Why does Finland permit this?

Nokia has been teetering on the edge for a period, so they would welcome such an investment.

Re: Nvidia takes $1B stake in Nokia

#12
post #3

Maybe they got so much money with the AI boom that they don't know anymore what to do with the cash at hand and so starts to invest it in direct now.

I was reading an article earlier today that said passive investing is more than 50% of the market--and since most ETFs allocate by market cap, it causes a reinforcing feedback loop for market cap leaders.

What is the mechanism behind that?

In a hypothetical market with 100% ETFs, you’d have a status quo.

Edit: maybe not, since you have ETFs that invest in, say, Nasdaq only, which is tech oriented and would influence S&P500.

Re: Nvidia takes $1B stake in Nokia

#14

I think the US Gov probably "incentizied" Nvidias stake in Intel, and I wonder if they did here as well. It's like "if your going to sell chips to China, you have to spend some of the money funding non-Chinese tech". Nokia's capabilities to deliver 5G networks is a direct competitor to Huawei, right? Is Nvidia functionally an strategic hedge fund of the US Government? Would this fall under Jeffrey Sach's realm?

> I think the US Gov probably "incentizied" Nvidias stake in Intel, and I wonder if they did here as well.

If you wanted something in the x86 space it was either Intel or AMD. AMD is a direct competitor. If I was Nvidia I'd have done something about Intel. At least stop them from crashing further.

Re: Nvidia takes $1B stake in Nokia

#16
post #9

Microsoft (Elop and Ballmer) ruined Nokia's cell phone line that led to massive layoffs. Let's see if this investment leads to the final elimination of an EU tech company. Why does Finland permit this?

Nokia never executed on a touch screen OS. If i remember their final attempt with a Linux based OS was considered "good", but it was too little, too late. It was already over when they were scooped up by Microsoft, who were desperate themselves.

Pretty sure Nokia was glad to offload the handset business so they could feed money into markets they were still competitive in.

Re: Nvidia takes $1B stake in Nokia

#17

I think the US Gov probably "incentizied" Nvidias stake in Intel, and I wonder if they did here as well. It's like "if your going to sell chips to China, you have to spend some of the money funding non-Chinese tech". Nokia's capabilities to deliver 5G networks is a direct competitor to Huawei, right? Is Nvidia functionally an strategic hedge fund of the US Government? Would this fall under Jeffrey Sach's realm?

Yes, worked there and can confirm Nokia (previously known as Alcatel Lucent) is Cellphone infastructure.

Re: Nvidia takes $1B stake in Nokia

#18

I always forget that Nokia bought out Siemens part of "Nokia Siemens Networks" and it is now just "Nokia networks".

And they also bought Alcatel-Lucent.

Nokia today is sort of “everybody who was making networks in Europe and North America except Ericsson”.

Re: Nvidia takes $1B stake in Nokia

#19

I think the US Gov probably "incentizied" Nvidias stake in Intel, and I wonder if they did here as well. It's like "if your going to sell chips to China, you have to spend some of the money funding non-Chinese tech". Nokia's capabilities to deliver 5G networks is a direct competitor to Huawei, right? Is Nvidia functionally an strategic hedge fund of the US Government? Would this fall under Jeffrey Sach's realm?

Do you mean David Sacks, the AI czar?
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