SoftBank has sold its entire stake in Nvidia, pocketing $5.8% billion in the process. So why is SoftBank selling now. The company says it needs the liquidity to fund its AI investment bets, whether that's deal making or infrastructure.But it comes, of course, at a time when there's a lot of concern and a lot of hand ringing about whether or not we are facing an AI infrastructure bubble. Again, SoftBank says this is about financing. It's not about Nvidia itself, but the company does want to be a key player o ...

Core View on CoreWeave Inc. - Kerrisdale Capital has established a short position against CoreWeave Inc., describing it as a "debt fueled GPU rental business with no moat" and projecting a price target that suggests a 90% downside from its current valuation [1][2] Financial Performance and Valuation - Kerrisdale estimates CoreWeave's fair value at approximately $10 per share, indicating that the company's explosive growth is driven by hype rather than sustainable innovation [2][3] - The report criticizes CoreWeave for generating returns below its cost of capital, which is detrimental to shareholder value [3] Customer Concentration and Financial Risks - CoreWeave's financial model is described as fragile, heavily reliant on expensive asset-backed debt with interest rates ranging from 11% to 15% [5] - The company is projected to deplete $19 billion in cash by 2025 and faces significant risks due to extreme customer concentration, with Microsoft accounting for 70% of its revenue [5][6] Partnership with Nvidia - CoreWeave's close partnership with Nvidia is under scrutiny, as Nvidia acts as both an investor and a major customer, contributing to 15% of CoreWeave's total revenue in 2023 [4] - Critics argue that this "round-trip arrangement" raises concerns about inflated valuations and the sustainability of CoreWeave's business model [4][6] Market Performance - CoreWeave's stock price rose by 7.60% to $120.47 per share, reflecting a 201.18% increase since its listing in March [7]

Group 1 - A surge of competition from China, particularly from DeepSeek's R1 and Alibaba's Qwen 2.1, has led to a significant sell-off of Nvidia stock, threatening to push it below $100 [1] - Alibaba Chairman Joe Tsai has raised concerns about a potential bubble in AI data center investments due to indiscriminate spending on infrastructure [2][3] - Despite the current nervousness in the market, as evidenced by a nearly 2% drop in Nvidia shares following Tsai's warning, the overall trend for Nvidia remains positive with a 2.17% increase over the week [5] Group 2 - The Stargate Project, a major infrastructure initiative announced by President Donald Trump, is part of the broader trend of aggressive AI development, with Alibaba also heavily investing in this area [4] - Even if a bubble in AI infrastructure exists, the long-term prospects for the AI sector are expected to remain strong, similar to the growth of the internet post-Dot-com bubble [6] - The potential deflation of an AI infrastructure bubble could lead to significant short-term losses for many investors [7]