Nvidia's 'near-term setup is under pressure' as SoftBank is reportedly looking to unload its stake (NVDA)

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December 12, 2018 2:51 PM

Nvidia's near-term trading dynamics are under pressure as Softbank is reportedly exploring a sale of its Nvidia stake for early next year, RBC says.

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SoftBank is reportedly exploring a sale of its
"This is a negative" as Softbank likely has solid information on overall Data Center trends, RBC analyst Mitch Steves, a long-time bull on Nvidia, said in a note out Wednesday.
He concludes that the near-term setup is "under pressure."

Nvidia's near-term trading dynamics are under pressure as SoftBank's Vision Fund is reportedly

Mitch Steves, a long-time bull on Nvidia, said in a note out on Wednesday.

Nvidia's data-center sales, the main driver of the company's bottom line, grew a record 70% on a yearly basis in the first nine months of 2018. But Steves said the new information led him to lower his forecast on Nvidia's data-center revenue growth to between 25% and 30% year-over-year, down from a 40% to 60% y/y increase.

The chipmaker's crypto problems "will persist longer than expected," Steves said in November, adding that market demand for used GPUs

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