Softbank Vision Fund sells entire stake in struggling chipmaker Nvidia
Softbank’s Vision Fund has sold its stake in chipmaker Nvidia, which saw shares plummet after it cut its fourth quarter revenue estimate by $500m last week.
In Softbank’s third quarter report it revealed that the drop in Nvidia’s share price following the forecast cut reduced the fund’s valuation gain by ¥299.5bn (£2.11bn).
Read more: Chipmaker Nvidia slashes fourth quarter guidance, causing shares to spiral
However, the company’s earnings report revealed that the Vision and Delta investment funds recorded combined operating income of ¥808.7bn for the period.
Nvidia blamed the cut in its fourth quarter revenue guidance on slowing performance in China, with chief executive Jensen Huang saying the firm had suffered an “extraordinarily, unusually turbulent and disappointing quarter”.
Management pointed to "deteriorating macroeconomic conditions, particularly in China" after experiencing weakened demand for its gaming chips in the region. It also received lower-than-expected sales in its data centre business.
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The company’s updated forecast for the quarter was $2.2bn, down from an earlier prediction of $2.7bn.
Nvidia’s share price closed at $149.18 last night, down 48.9 per cent from last October’s high of $292.