Nvidia Corporation (NVDA) saw its shares gain 3.2% on Wednesday after Japan’s SoftBank Group Corp. revealed that it has sold off its entire stake in the chipmaker.
SoftBank’s Vision Fund held an approximate 5% stake in Nvidia, valued at about $3.6 billion, which it sold off in January. Nvidia’s stock lost a significant portion of its value over the past few months. The Japanese company, however, was able to offset most of the loss with the help of derivatives contracts.
A report from Nikkei Asian Review stated that SoftBank might eventually sell its stake in ride-hailing company Uber as well. Uber is currently working on its plans to go public.
Last month, Nvidia lowered the outlook for its fourth quarter of 2019. The company now expects revenues of $2.2 billion versus the previous estimate of $2.7 billion, due to weakness in the Gaming and Datacenter units.
The Gaming business was hurt by a slowdown in the global economy, especially in China, and by lower sales of certain high-end GPUs. The Datacenter division was impacted by the failure to close some forecasted deals during the fourth quarter due to customers’ cautiousness in spending.
Nvidia also lowered its gross margin expectations for the fourth quarter. The company now expects GAAP gross margin to be 55%, plus or minus 100 basis points, and adjusted gross margin to be 56%, plus or minus 100 basis points.
Nvidia is expected to report its fourth quarter 2019 results on February 14, 2019.
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