May 26, 2017 | Investment Advice

International News (Issue 450) – May 26th, 2017

Overseas this week we had a few things to take note of.In the technology space, Japan’s Softbank (9984) took a surprise 5% stake in the leading graphics chip designer NVIDIA (NVDA).

The noteworthiness of this if you will, is that NVDA shares are already up 200% in the past 12 months and now have a market value of $80bn. Further, that Softbank have decided to pay up for this stake is doubly interesting since the Japanese group surprised everyone early last year by acquiring leading chip-maker ARM Holdings of the UK for a whopping US$32bn.

Softbank are notable for their prescient views on emerging technological trends, and their founder Masayoshi Son is widely seen as a visionary in the vain of Steve Jobs, Elon Musk and Jeff Bezos.

The $4bn bet on NVDA isn’t huge by Softbank’s standards but is notable in that it comes at a time when the semi-conductor has run red-hot for months now, with many questioning whether it is time for as pullback.

This bet certainly points to a view that the explosion in internet connectivity has a long way still to run.

In Hong Kong this week we saw the local monetary authority order a new round of tightening measures for the property sector. Much like Australia and indeed the rest of the world, Hong Kong property has been on a tear, fueled by low interest rates and Chinese buying.

Have a great weekend.

Jono & Guy

Wednesday Closing Values

U.S. S&P 5002415+50+2.1%
London’s FTSE7518+82+1.1%
Japan’s Nikkei19813+260+1.3%
Hang Seng25631+495+2.0%
China’s Shanghai +18+0.6%


Disclaimer: This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information.


A unique and personal service approach and support for all your business advisory and personal wealth management needs

Request a consultation

A unique and personal service approach to support all your business advisory and personal wealth management needs.

Request a consultation