Nvidia's stock takes a dive again, largest investor ready to pull out
The green team has already gone through enough unfortunate events this year, from the decline of the crypto world that prompted GPU oversupplies and clogged distribution outlets, to increased taxes imposed by the U.S. – China trade wars, and finally ending with mixed reactions for the overpriced RTX 2000-series GPUs and the manufacturing problems that lead to quite a few faulty high-end cards. On top of these problems, investors started to panic, and shares got almost halved, from US$289.36 (during the cypto craze glory days) to US$147.83.
Even though the crypto fallout did bring with it decent prices for the Pascal GPUs, investors were not really happy about the oversupplies and greatly exceeded demand. Nvidia gets almost 20% of its revenue from China, and the instabilities created by the trade wars also left investors in doubt. The overprice RTX 2000-series GPUs are not really selling that well either, apaprently, as Nvidia decided to postpone the announcement and availability of the mid-range Turing GPUs.
Speaking about worried investors, Bloomerg informs that SoftBank, Nvidia’s largest investor, just decided to sell its stake for US$3 billion profit, but the deal is not yet finalized, and this action could be revoked if Nivida comes with a solution. GPU-based crypto mining is probably not going to explode any time soon now, since ASICs are more profitable, so Nvidia will most likely have to make do with just the gaming market.
AMD is not doing well either, but at least the red team is booming in the CPU sector now, which acts as a safety cushion for the stock market. Moreover, the red team seems to be determined to give Nvidia a run for its money in the years to come, and Nvidia’s gaming monopoly could come to an end, forcing the company to bring competitive tech and aggressive prices to the game once again.