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Note the first line: > SoftBank said Tuesday it has sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion as the Japanese giant looks to capitalize its “all in” bet on ChatGPT maker OpenAI. They are switching gears, not exiting, folks.
This should be the news of the day, or even should I say, the news of the last 3 years. The bubble is starting to crack.
There's no sign of cracking here: > SoftBank said Tuesday it has sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion as the Japanese giant looks to capitalize its “all in” bet on ChatGPT maker OpenAI.
Earlier quoted context omitted.
SoftBank selling their stake in the AI shovel company to put it all directly in the AI gold rush company is evidence of bubble starting to crack?
> to put it all directly in the AI gold rush company There are 3 facts here: 1. Softbank's nvidia stake sale has happened 2. Softbank has not put it all directly into the AI gold rush 3. 2 other investment entities have also sold most/all their stake in Nvidia Do what these 3 facts as you will but these are ripples in the surface of the tech world
In the game of musical chairs, there is no official moment when players need to get in position to reach the closest chair. One second there is music and another second later there isn't. However, the that period exists if you can look at the relevant signs: the host hand and body in relation to the music record player. No AI player will admit to be positioning for a sector collapse but it would be naïve to believe t…
I wonder if there are people (with money) who have a really good grasp on this market (hardware I mean). For example you could have sold NVDA in August, not much lower than current price, and bought SNDK and 5x-ed your money in 3 months.
Earlier quoted context omitted.
They probably know more than us. Such as alternative chips or that the Chinese will go in-house sooner than we think. Nvidia’s moat is not as permanent as people think.
Given how poorly Intel and AMD have fared, it suggests the hardware moat is much deeper than the software one.
Makes no sense to sell their entire position on a key infrastructure player, if you’re going all in on ai. That’s very odd.
Earlier quoted context omitted.
I would have thought that the OpenAI bet is way more risky, because if someone comes along with a better model it could really hurt OpenAI. NVIDIA seems harder to dethrone imo.
They probably know more than us. Such as alternative chips or that the Chinese will go in-house sooner than we think. Nvidia’s moat is not as permanent as people think.
Earlier quoted context omitted.
> They probably know more than us. Such as alternative chips or that the Chinese will go in-house sooner than we think. Nvidia’s moat is not as permanent as people think. This is Softbank though, they're not really noted for great investment decisions (apart from Alibaba really early on). Like, my prior is that when Softbank invest in something, the growth is done (but then I am, very much, a cynic).
Softbank had 5% of Nvidia stock just before gen AI boom. Then they sold it when it was at its lowest. If they didn't it would have covered all their losses many times over with a profit of more than 200 billion dollars. It's just baffling they are still getting billions to spend. [1]: https://www.wsj.com/articles/softbank-sells-entire-nvidia-st...