Before the bell: SoftBank exits Nvidia completely

SoftBank sells its entire Nvidia stake. AMD sets its sights on dethroning Nvidia.

While Europe celebrated Armistice Day and the U.S. observed Veterans Day — both typically quieter trading sessions — a few tech names still made waves on Wall Street. CoreWeave (-16.3%) plunged after weak guidance overshadowed strong results, while media group Paramount Skydance (+9.8%) surged on optimism about its streaming division. The biggest shock came from Japan’s SoftBank (-2.5%), which revealed it had sold its entire stake in chip designer Nvidia, dragging the stock 3% lower. In Asia this morning, tech shares are rebounding, with Hong Kong’s Hang Seng Index up 0.9%.

In the Netherlands, payment specialist Adyen (+8.4%) rallied after its investor day, as its new growth targets were well received — though it remains to be seen if those gains will hold today. ABN Amro reported net interest income of 1.58 billion euro, in line with expectations. Bayer beat analyst forecasts with a sharply higher profit. Later today, Circle Internet Group, Cisco, and Pan American Silver are due to report results.

AMD aims to challenge Nvidia on its own turf

Anyone investing in the Dutch chip sector must keep a close eye on Nvidia’s results — they often act as a bellwether for the entire semiconductor industry. Nvidia reports next week, but peer AMD released its own numbers yesterday and held its first investor day since 2022. The outlook left investors salivating. CEO Lisa Su expects annual revenue growth of 35% over the next three to five years, with the data center division alone projected to grow by an average of 80% per year. That would quickly lift annual sales into the tens of billions of dollars. Such growth is essential to justify AMD’s lofty valuation — currently trading at 60 times next year’s expected earnings. But if management’s forecasts are correct, that multiple could fall to around 12 times earnings within five years. By focusing on data centers, AMD is directly confronting Nvidia, which still controls more than 90% of the market for AI chips.

Opportunities in companies punished by AI hype?

One of the biggest advantages you can have as an investor? Being an independent one — like the members of Spaarvarkens — free to make contrarian moves without the pressure of quarterly redemptions or short-term reporting. Institutional funds don’t have that luxury. When markets fall, they often face withdrawals and are forced to sell precisely at the worst moment, reinforcing downward pressure. That made me wonder this week whether the same dynamic is at play with Duolingo. The stock has lost 64% of its value since May, as investors fear AI will destroy its business model. But will it? You could argue the opposite: AI could help tailor language courses to individual learning styles and pacing — improving the experience and boosting retention. Since ChatGPT launched three years ago, Duolingo’s revenue has grown around 40% annually. Many firms once thought vulnerable to AI disruption — like Adobe, whose sales and profits continue to climb — are proving far more resilient than expected. Researching unfairly punished “AI casualties” could turn into a compelling investment theme for the coming months.

Did you know…

JD.com reported a 60% surge in orders during Singles Day, China’s answer to Valentine’s Day? What began as a celebration for singles on November 11 has evolved into the largest online shopping event in the world, as consumers splurge on gifts for themselves and others.

This article was translated from Dutch and was originally published on Spaarvarkens.be.