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SoftBank sells its entire stake in Nvidia

cnbc.com

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Re: SoftBank sells its entire stake in Nvidia

#161

Post by creer »

ares623 wrote: post #16
lifthrasiir wrote: post #13

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.

Selling the _entire_ stake sounds really aggressive though? Is that normal? Even if you're all-in on OpenAI, does it not make financial sense to have _some_ stake in Nvidia considering they are the only ones with an actual moat? Unless there are CUDA alternative breakthroughs we will hear about in the next few days.

> Selling the _entire_ stake sounds really aggressive though? Is that normal?

They did not. They sold MOST of their stake in Nvidia long ago before anyone paid attention to Nvidia vs AI. It's one decision as part of a complex cloud of decisions.

Also this "stake" was around one thousandth of Nvidia. Minor. Most companies have lots of owners with much larger stakes.

Re: SoftBank sells its entire stake in Nvidia

#162

Post by EFreethought »

toomuchtodo wrote: post #147
lenerdenator wrote: post #142

Earlier quoted context omitted.

> It's just baffling they are still getting billions to spend. When you realize that most investors at that level are degenerate gamblers, and that they're even worse about thinking "the Generals were due!" than your buddy who can't look away from the DraftKings app for more than five minutes, it's not so baffling anymore. The only difference is that when you have that much money, you own the casino.

It is hard not to love the degeneracy of Son Masayoshi as a gambler. The trick is to not take it seriously. https://news.ycombinator.com/item?id=21799821 Bill Hwang of Archegos Capital Management is a close second (lost $20B in two days, and basically brushed off margin calls while his highly overlevered bets were collapsing, incurring $10B+ of losses at the investment banks he worked with). https://www.bloomberg.com…

Son made most of his money with Alibaba. I think he made 500x or 1,000x his original investment. Absolutely crazy.

Almost everything he has done since then has lost money. When I read that he is investing in something, I just assume it will end badly.

Re: SoftBank sells its entire stake in Nvidia

#163

Post by diamond559 »

lifthrasiir wrote: post #13

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.

They don't see upside in Nvidia clearly or they wouldn't have completely sold out. If they don't think the risk/reward is worth it why should anyone else? Eventually you'll run out of greater fools.

Re: SoftBank sells its entire stake in Nvidia

#164

Post by CamperBob2 »

JCM9 wrote: post #90

By low, sell high. Any Nvidia shareholders would be foolish not to sell at least part of their holdings right now. Don’t ride the bubble to the bottom.

You could make a lot of money, historically, by taking positions in opposition to Softbank.

Re: SoftBank sells its entire stake in Nvidia

#165

Post by defen »

YetAnotherNick wrote: post #124
disgruntledphd2 wrote: post #94

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...

I'm not sad for Softbank missing out on $200 billion; I'm sad for not getting to witness how much more investment degeneracy that could have funded.

Re: SoftBank sells its entire stake in Nvidia

#166

Post by creer »

lifthrasiir wrote: post #13

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.

As usual also "sold its entire stake" can be written as "investors eagerly bought SoftBank's entire stake of nvidia".

Re: SoftBank sells its entire stake in Nvidia

#167

Post by diamond559 »

rdsubhas wrote: post #61

There is no craziness here. It's a "Value rotation". Sell high, buy low, repeat. Capture a higher rate of return. OpenAI just completed separating it's non-profit and for-profit restructuring: https://www.cnbc.com/2025/10/28/open-ai-for-profit-microsoft... This probably means the for-profit structure will be going public in 2026, and there is probably a last private round happening.

Clearly they don't see upside in Nvidia, the stock single handedly keeping this bubble intact, nothing to worry about of coarse.

Re: SoftBank sells its entire stake in Nvidia

#168

Post by mulmen »

diamond559 wrote: post #163
lifthrasiir wrote: post #13

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.

They don't see upside in Nvidia clearly or they wouldn't have completely sold out. If they don't think the risk/reward is worth it why should anyone else? Eventually you'll run out of greater fools.

Yes because Softbank never makes mistakes clearly whatever they are doing is optimal.

Re: SoftBank sells its entire stake in Nvidia

#169

Post by lonelyasacloud »

lvl155 wrote: post #83
randomNumber7 wrote: post #40

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.

> 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.

SoftBank have holdings in Arm and likely to know what is coming down the pipeline.

Re: SoftBank sells its entire stake in Nvidia

#170

Post by raw_anon_1111 »

tverbeure wrote: post #151
raw_anon_1111 wrote: post #137

Earlier quoted context omitted.

Nvidia doesn’t make hardware. It designs hardware. TSMC makes hardware.

You can make the same comment for pretty much any company that outsources (some of) its production, and it’d be irrelevant, pedantic and off-topic every time. You’re also wrong. TSMC produces but a small part of the products that Nvidia sells: the silicon. They don’t produce any of the tens of thousands other components that go in a server.

Its not being pedantic at all. Intel designs chips and manufactures chips. Intel’s major issue is not its design chops - some of its most advanced designs today are manufactured by TSMC.

And calling the actual processor a “small part” of where Nvidia’s value is doesn’t jibe with reality.

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