technology

SoftBank's investment fund dumps entire $3.6 billion stake in Nvidia


Jensen Huang, CEO of Nvidia, shows the NVIDIA Volta GPU computing platform at his keynote address at CES in Las Vegas, January 7, 2018.

Rick Wilking | Reuters

Jensen Huang, CEO of Nvidia, shows the NVIDIA Volta GPU computing platform at his keynote address at CES in Las Vegas, January 7, 2018.

Chipmaker Nvidia suffered another setback Wednesday after SoftBank’s Vision Fund disclosed it had sold its entire stake, worth more than $3 billion, in the company in January.

In its third-quarter earnings release on Wednesday, SoftBank said its fund, which invests in technology ventures, had “disposed its entire holding of Nvidia shares.” The position was valued at $3.63 billion as of December 31.

The disclosure is another blow for Silicon Valley-based Nvidia, which has seen its share price nearly slashed in half in the past four months. Last week, Nvidia cut its revenue guidance for the fiscal fourth quarter citing “deteriorating macroeconomic conditions, particularly in China.”

Nvidia is part of a growing list of chip stocks warning about weakness in the world’s second largest economy, as well as global demand for smartphones. In January, Apple issued a rare cut in its revenue guidance citing weak demand from Chinese consumers.



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