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Nvidia shares lose half their value, Softbank looks to sell up

By midian182 · 35 replies
Dec 13, 2018
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  1. Since reaching an all-time peak of $289.36 on October 1, the chipmaker’s stock has fallen 48.8 percent to just under $149. Signs of this plummet appeared a few weeks ago when Nvidia’s share price reached its lowest point since July 2017 as Bitcoin dropped to $3755—the crypto is currently at $3365.

    Nvidia admits it failed to predict the decline of cryptocurrency mining, which was a major contributor to the company’s record quarters. Overestimating demand from miners has left the firm with an overstock of GTX 1060 cards, which could delay the release of mid-range Turing cards, but having “excess channel inventory” isn’t its only problem.

    Nvidia is facing increased competition in its other businesses, and the US-China trade war is hitting it hard. The Wall Street Journal notes that 20% of the company’s $9.7 billion revenue last year came from China. There’s also the RTX 2000-series, which has been criticized for its high prices. The dearth of real-time ray tracing games hasn't helped the cause, either.

    But things could get even worse for Nvidia. A Bloomberg report citing unnamed sources claims that Softbank Group, Nvidia’s fourth-largest shareholder, is considering selling its stake in the company next year, bringing the Japanese conglomerate $3 billion in profit. The potential move is said to have been prompted by Nvidia’s falling share price, which dropped again on the back of the news.

    Permalink to story.

  2. noel24

    noel24 TS Evangelist Posts: 520   +459

    They should raise prices of their consumer GPUs some more. That will fill the void.
  3. ForgottenLegion

    ForgottenLegion TS Guru Posts: 418   +419

    Yeah, just make a bunch of $Million Arab Oil Black Edition cards. Problem sorted :D
    Mithan, Dimitrios and MonsterZero like this.
  4. XtremeHammond

    XtremeHammond TS Booster Posts: 76   +52

    You mean Gold edition. :)
    MonsterZero likes this.
  5. captaincranky

    captaincranky TechSpot Addict Posts: 14,976   +4,010

    What you both mean to say is "black gold edition cards. Haven't either one of you heard the opening title scene to "The Beverly Hillbillies"?

    Eugenia and Charles Olson like this.
  6. yRaz

    yRaz Nigerian Prince Posts: 2,895   +2,220

    While I don't want to wish ill on any side in the tech world, nVidia needs a reality check. They are very anti consumer and also anti competitive. Anyone remember the nVidia partner program? They would heoo developers code for their hardware. Objectively, AMDs high end cards have more compute power but when Nvidia helps developers optimize for only their cards it makes it difficult to raw power to make up for that.

    So here is to hoping this gives them a wake up call and we can finally have an even playing field regardless of budget or hardware
  7. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 1,550   +1,768

    And yet nvidia GPUs are selling for insane prices, worse then the mining boom! On newegg, GTX 1080s are regularly going for over $1200! I'm sure that is doing a lot for GPU sales. And now there is a new 1070ti coming out despite the 2000s having been out for months, and the 1070ti sits squarely around the RTX 2070 and 2080.

    The fact nvidia cant let go of the 1000 series, despite them supposedly being end of life, suggests pascal really is that hard to make, and isnt selling like they want. NO wonder investors are panicking. Nvidia had the market for itself for a single generation and screwed it up royally.
    Raw compute power =! gaming performance. Ask nivdia. The fermi cards had more compute then evergreen, did sweet **** all for them. And that was with nvidia's might behind them.

    AMD's problem is adapting professional cards for gaming use. It leads to higher power consumption and limitations on clock rate. They understood this with evergreen to an extent. Once nvidia decoupled the two with kepler, they were off to the races, and the train hasnt stopped. AMD needs to do the same if they ever hope to compete.
    meric, Dimitrios and Charles Olson like this.
  8. redgarl

    redgarl TS Enthusiast Posts: 58   +62

    Exactly, AMD and Raja tried to build a jack of all trade GPU with Vega. The end result is a mixed feeling. Vega is incredible in the low-end and iGPU world, an interesting and competitive product in the compute world, but a bad high-end GPU. Vega 56 is a nice card at the right price, but the Vega 64...

    This is the reason why I believe Navi is a game changer, it is the Maxwell of AMD. I am just glad that AMD finally understood that HBM is way too expensive for the consumer market.
  9. Puiu

    Puiu TS Evangelist Posts: 3,450   +1,919

    In their defence, nobody would have expected memory prices to rise 2-300%. AMD was hoping that as the technology matures it would become cheaper to mass produce HMB 2... but instead it became a luxury good and one of major reasons Vega could not undercut Nvidia in terms of pricing.
    Navi might not be a game changer as people hope it to be (overhype is in full swing), but it should allow them to better compete at almost every price point except ultra high end (RTX 2080 and up).
    Eugenia and Charles Olson like this.
  10. Adi6293

    Adi6293 TS Maniac Posts: 226   +206

    Everything is down to the price. I bought Shapphire Vega 64 Nitro for £399 and it came with 3 games, can't complain at all :)
    TempleOrion and Charles Olson like this.
  11. ZackL04

    ZackL04 TS Guru Posts: 531   +261

    Time to buy shares, no kidding.

    Nvidia isnt going anywhere, remember they also build the brains in the Nintendo Switch
    Dimitrios likes this.
  12. EEatGDL

    EEatGDL TS Evangelist Posts: 693   +376

    Why does the media keep blaming it was the crypto-mining miscalculation? The stock didn't start falling after the last quarterly report, when that was communicated. It didn't even start falling when RTX reviews came out. It was after performance criticism and a wave of bad news (vulnerabilities to side-channel attacks, the faulty RTX 2080 Ti, the realization of the huge performance impact of "RTX ON" in games) for NVIDIA started coming out.

    It has a lot more to do with RTX than the mining thing. I was in the market before the reviews and pulled out after criticism to RTX started sinking in the public's mind, first week of October.
  13. MonsterZero

    MonsterZero TS Evangelist Posts: 566   +323

    RTX is tanking because its too expensive. The reason 1080Ti's are running high are because there is limited stock with no plan to resume production while at the same time, no one is buying the RTX cards due to price.

    They've really screwed the consumer pooch so to speak and it's reflecting in their market share.

    Keep it up nVidia.
  14. Fobus

    Fobus TS Addict Posts: 104   +75

    Didn't AMD choose HBM in large part because they couldn't fit into power envelope otherwise? AMD cards are a stinker for power consumption. At least that's what I remember Steve from GN telling.
  15. 144hzGamer

    144hzGamer TS Addict Posts: 214   +132

    Not too long ago the best gpu money could buy was 350€ (hd5870). Now it is 1200€ (rtx 2080ti). Is anti consumer and only hurts pc gaming imo. Yes I know consoles are very weak in comparasion but they have fair prices. You still paying 450€ here for a gtx 1070, is nuts.
  16. Dimitrios

    Dimitrios TS Guru Posts: 470   +351

    Don't worry folks, his stocks in leather jackets are going up.
    MonsterZero and loki1944 like this.
  17. Dimitrios

    Dimitrios TS Guru Posts: 470   +351

    Wait........................................... The graph that's shown here that dips off, is this from FPS with Ray Tracing enabled? ;-)
    TempleOrion and loki1944 like this.
  18. i3kingwizardop

    i3kingwizardop TS Booster Posts: 42   +17

    I doubt its hit bottom yet. I'm glad I got out when I did.
  19. poohbear

    poohbear TS Maniac Posts: 299   +210

    It WAS the cryptomining dearth. Nvidia lied the quarter before saying cryptomining was not substantial. The last quarter they missed their numbers and blamed it on cryptocurrency! Investors were disgusted and it has been selling ever since. That and the US/China trade war. But the catalyst was certainly them missing their numbers last quarter and blaming it on the drop in cryptocurrency sales.
  20. GirlDownunder

    GirlDownunder TS Booster Posts: 109   +34

    "Texas Tea"? ;)
  21. Puiu

    Puiu TS Evangelist Posts: 3,450   +1,919

    It was one of the advantages of using HBM although not the most important one. Bandwidth is the primary reason for using HMB.
    In terms of power usage, it's mostly the very high default voltages and high clocks of the Vega 64 and Vega 54 that make it use so much power. Tweaking it can make Vega look ok power-wise without losing any noticeable performance (it's why it works so well for APUs).
  22. Dosahka

    Dosahka TS Addict Posts: 152   +59

    LOOKS like RTX OFF for NVIDIA now. More meme incoming.
    (capitals intended, not yelling)
  23. fktech

    fktech TS Maniac Posts: 526   +138

    Still overvalued by 90%!
  24. loki1944

    loki1944 TS Addict Posts: 156   +92

    Well AMD stock has falllen pretty hard as well right?
    hahahanoobs likes this.
  25. captaincranky

    captaincranky TechSpot Addict Posts: 14,976   +4,010

    Although in this case, I believe they were referring to "Arabic espresso"

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