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.
Aroon Indicator for NVDA shows an upward move is likely
NVDA's Aroon Indicator triggered a bullish signal on May 07, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 336 similar instances where the Aroon Indicator showed a similar pattern. In of the 336 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where NVDA's RSI Indicator exited the oversold zone, of 17 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 01, 2025. You may want to consider a long position or call options on NVDA as a result. In of 83 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 April 24, 2025. Looking at past instances where NVDA's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
NVDA moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. 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 .
NVDA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
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 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 77, placing this stock better than average.
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 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: P/B Ratio (34.965) is normal, around the industry mean (9.350). P/E Ratio (38.619) is within average values for comparable stocks, (69.809). Projected Growth (PEG Ratio) (1.611) is also within normal values, averaging (2.176). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (21.598) is also within normal values, averaging (55.906).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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