Nvidia Shares Drop After SoftBank Sells Stake

Watch Nvidia Shares Drop After SoftBank Sells Stake - Bloomberg on Dailymotion

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00:00The jitters around AI of late have been around an AI bubble and demand concern, but ultimately

00:04these are supply side issues, constraints for CoreWeave, maybe cash constraints for SoftBank

00:10needing to sell off NVIDIA. Yeah, it's really interesting how this has shifted really from

00:15the dip buying that we saw yesterday that drove NVIDIA up. CoreWeave, I think, was also up before

00:19the bell before it reported its results. And now we're seeing really any concern on either side,

00:24AI bubble or supply here is really weighing on these shares. I think as the AI theme just continues

00:31to get stretched, investors are nervous and they're really well, really ready to sell at kind of any

00:37moment. This especially coming before NVIDIA results next week. Obviously, the whole market really looks

00:42ahead to that, but shares going down into NVIDIA results is a little bit different than what we

00:47usually see. Right. Carbon, you made a really good point and I'm going to bring up a chart to illustrate

00:52it. Yesterday, NVIDIA jumped almost 6%, which was its biggest jump since early April. So a drop off

00:58of 3% or more in the session taken into account with the news flow. Give that context. Generally

01:06speaking, though, what is the sentiment of the investors that we're speaking to right now? Are

01:10they still like mega bullish on this long term trend that they think will just carry on and keep going?

01:16Yeah, that's a really great question. I think people are very split, but I hear a lot of people that are

01:21still very bullish on the long term trend and even say that some selling now or a little shakeout in the

01:26market would be pretty healthy. I mean, valuations are very stretched. We've were three years into a bull

01:31run. These are some of the biggest stocks in the overall market. So it makes sense that they drag down the

01:36entire index. So a little bit of a shakeout here wouldn't be a huge concern. Obviously, this is really

01:41overlaid, though, with the fact that people are really talking about an AI bubble. And so I think any selling and any of

01:47these stocks, even, you know, at the end of the year, when people are sort of looking to lock in

01:51performance, lock in gains, it, you know, sparks more conversation around this entire debate about an AI bubble.