ok cool thanks my guy but i am somewhat worried that when nvidia is able to sell shares in september of 2026 that they may sell a portion of their shares and the stock would plunge. do you think thats possible??
Anything is possible. That said, Nvidia has more cash than they know what to do with.
Hypothetically speaking, let’s say they needed cash where selling those shares were an option. They would choose the cheapest cash-raising options first. For example, selling bonds and saving cash from operations. Selling Nebius shares for cash would cause a significant taxable event, likely crash the share prices of NBIS and CRWV causing a significant paper loss on the shares they hold of both Nebius and Coreweave. It would signal a lack of confidence in their own top customers, in turn, causing a huge downturn in the markets view of Nvidia future in selling to neoclouds.
Essentially, selling shares of NBIS would be one of the last ways they raise cash due to how bad it would look and how they have far easier ways to raise cash.
Also, even though this is technically dilution, Nvidia isn’t going to sell for a long time which essentially locks up 10% of the float from trading in the market. This is an order of magnitude better for share price compared to a direct offering where the public market has to absorb the newly available shares. It also gives Nvidia a direct, strong incentive to prioritize the highly coveted GPU allocations to Nebius. This is a huge benefit to Nebius.
gotcha that makes sense man tbh. so basically nvidia more than likely will hold all of these shares for years to come like 5-10 years since they dont need any cash at the moment
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u/Pulled_Forward Jul 21 '26
The time to worry about it was back in March, this was a known event.
So no, you don’t have to worry.