Why Nvidia should be glad to see the back of SoftBank - FT中文网
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Why Nvidia should be glad to see the back of SoftBank

Thanks to the magical maths of AI, what the chipmaker loses on one hand it may gain with the other
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{"text":[[{"start":3.63,"text":"Peek behind the world’s most ambitious artificial intelligence companies, and often there is SoftBank. So it might seem troubling to see the Japanese investment company sell its $5.8bn stake in Nvidia, the chipmaker on whose wares the whole AI boom rests."}],[{"start":23.38,"text":"SoftBank’s finance chief noted on Tuesday that the sale is nothing personal. Its investment in the chipmaker has, after all, been enormously profitable. And while for Nvidia the optics are not great, the stake in question was tiny in the context of a company with a $4.8tn market capitalisation."}],[{"start":46.26,"text":"Besides, thanks to the magical maths of AI, what Nvidia loses on one hand it may gain with the other. Assuming SoftBank recycles its cash into more AI-related investment, that ought to support demand for Nvidia’s chips. At the company’s multiple of 20 times estimated annual revenue, a notional $5.8bn of new sales could add nearly $120bn of additional enterprise value."}],[{"start":81.84,"text":"Even if only a portion of that money finds its way to Nvidia directly, founder Jensen Huang still wins. The more investment pours into AI start-ups, the faster the hype cycle spins, which could help nudge up valuation multiples further."}],[{"start":98.38,"text":"This all presupposes that SoftBank will use its profits to make more investments — and not only fund those it has already announced. Investors might take fright if they think AI boosters are just pulling funds from one place to put them in another. For now, though, Nvidia should be happy to see the money-go-round still turns."}],[{"start":128.10999999999999,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1762914445_4094.mp3"}

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