Softbank Sells Entire $3.6 Billion Nvidia Investment

michelmond / Shutterstock.commichelmond / Shutterstock.com

Nvidia suffered a blow today as SoftBank's Vision Fund announced that it sold the entirety of its $3.63 billion investment in the chip-maker.

SoftBank was one of Nvidia's largest investors, but it dumped its share on January 10 the investment group said in its Q3 earnings for its fiscal year 2019. It was a little over 39.8 billion yen on Dec. 31, or just over $3.6 billion.

This is another financial hitch for Nvidia, which lowered its Q4 revenue guidance late last month citing "deteriorating" economic conditions in China, as well as some hitches in sales of its new RTX cards. CNBC reports that it lost almost half of its value in the past four months. Analysts have also warned that Nvidia may still be facing some cryptocurrency headwinds.

Nvidia isn't the only tech stock that has suggested weakness in China could be an issue going forward. Apple also cut its fiscal 2019 Q1 revenue projection on January 2, partially due to lower than expected iPhone sales and challenges in China.

SoftBank's Vision Fund includes investments in a number of other tech companies, including Uber, WeWork, Arm Holdings and Slack.

As of this writing, Nvidia's stock is up almost 3 percent.

Create a new thread in the News comments forum about this subject
27 comments
Comment from the forums
    Your comment
  • jaber2
    I got out of Nvidia is April when the stock was at $240 by selling all my Nvidia cards and mining rigs, I am no hedge fund manager but I saw this coming
  • Blitz Hacker
    Just buy it!! lol :)
  • Dantte
    oooo, thats going to leave a mark!