Softbank part ways with chip maker Nvidia (NVDA, $147.33)
In its latest third quarter earnings report, SoftBank, the Japanese multinational holding conglomerate, released information about its withdrawal of entire its stake in chipmaker Nvidia - worth $3.63 billion.
This is yet another setback for the Silicon Valley based Nvidia, which has recently witnessed its share price slash by half in the past four months as demand for its crypto-mining chips dried up. Nvidia’s share price has plummeted from a high of $292 a share in September to $153 a share Wednesday.
Last week Nvidia had cut its revenue guidance for the fiscal fourth quarter owing to declining macroeconomic conditions, particularly in China.
Nvidia is one of the latest victims in the growing list chip making companies, which have been severely impacted by economic weakness in the world's second largest economy and also due to sluggish growth in demand for smartphones.
SoftBank’s Vision Fund, which began investing in Nvidia in May 2017, said that the company considered selling its stake in Nvidia because it had bought shares at a lower price and has already made the expected profit on the investment. In addition to Nvidia, the Vision Fund has invested in some other companies like Uber, Didi, and Slack.
Shares of the Japanese tech giant closed slightly higher on Wednesday after the firm reported a 60% rise in quarterly profits and a $5.5 billion share buyback program. Despite the stake sell, Nvidia shares were up by 1.5% after the market opening on Wednesday.
NVDA in +8.04% Uptrend, rising for three consecutive days on January 06, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where NVDA advanced for three days, in of 373 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 30, 2024. You may want to consider a long position or call options on NVDA as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NVDA just turned positive on December 24, 2024. Looking at past instances where NVDA's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
NVDA moved above its 50-day moving average on January 03, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NVDA crossed bullishly above the 50-day moving average on January 07, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where NVDA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NVDA broke above its upper Bollinger Band on January 06, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NVDA entered a downward trend on December 27, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (49.505) is slightly higher than the industry average of (11.200). P/E Ratio (52.598) is within average values for comparable stocks, (57.138). Projected Growth (PEG Ratio) (0.955) is also within normal values, averaging (3.165). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (29.240) is also within normal values, averaging (50.435).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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