Nvidia Corp NVDA, a force to be reckoned with in the artificial intelligence (AI) industry, recently unveiled its investment portfolio, showcasing stakes in Arm Holdings Plc ARM, SoundHound AI Inc SOUN, and Recursion Pharmaceuticals Inc RXRX.
Nvidia’s engagement with Arm is particularly notable, following their prior $40 billion acquisition attempt in 2020 that fell prey to regulatory hurdles in February 2022.
Although Nvidia’s proposed acquisition of Arm didn’t materialize, the British chip designer witnessed an impressive initial public offering in 2023 and remained predominantly owned by SoftBank Group Corp.
Arm Holdings’ shares have surged significantly, with its market valuation ascending to nearly $130 billion, attesting to the robust growth and potential within the semiconductor and AI industries.
The chip designer’s stock experienced a 145% increase in the last three months, asserting its worth amidst the AI craze. Meanwhile, Nvidia, a $1.8 trillion market cap entity, gained 52% in market value during the same period.
Arm Holdings recently reported its quarterly earnings, surpassing sales and EPS expectations, racking up $824 million in revenue and an EPS of $0.29. This exceptional performance is attributed to the escalating adoption of Armv9-based chips and amplified demand for advanced CPUs in AI applications.
Industry analysts underscored the pivotal role of Armv9 in smartphones and the prospective growth in the Data Center, Automotive, and IoT sectors.
Furthermore, Nvidia’s investment in SoundHound AI, a company specializing in AI-driven audio recognition software, was met with positive reception in the market. Nvidia’s association with SoundHound dates back to 2017.
Notably, Nvidia’s investments in Recursion Pharmaceuticals and SoundHound were valued at $76 million and $3.67 million, respectively. Additionally, Nvidia disclosed smaller investments in Nano-X Imaging Ltd NNOX, a medical imaging company, and TuSimple Holdings Inc, a company focusing on autonomous driving technology.
Price Action: ARM shares concluded Wednesday at $126.40, marking a 5.35% increase.
Disclaimer:This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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