Santa Clara, California – Nvidia’s investments in AI-backed companies have driven their shares to new heights, with the exception of Arm, which recently surpassed $130 billion in market cap. The surge in share prices followed the 13F filing, a form required to be submitted by institutional investment managers overseeing at least $100 million in assets. This investment trend, however, did not come as a surprise to those familiar with old news reports and filings.
Nvidia’s market value surpassed that of Amazon and Alphabet, making it the third most valuable company in the U.S., behind only Apple and Microsoft. The company’s shares have surged over 200% in the past 12 months, driven by the high demand for its AI chips used in powerful AI models developed by major tech companies like Google, Amazon, and OpenAI.
The disclosure of Nvidia’s stake in various AI companies saw remarkable increases in their share prices. SoundHound, a company utilizing AI for speech and voice recognition, saw a 68% jump in its stock value after Nvidia’s disclosure of a $3.7 million stake. Similarly, Nano-X, a medical imaging company using AI, experienced a 59% increase in its stock value after Nvidia’s disclosure of a $380,000 investment. TuSimple, an autonomous trucking company, also soared 40% after the disclosure of Nvidia’s $3 million stake.
Nvidia’s more recent investments, made public late Wednesday, are positioned at the heart of the AI boom and are expected to have a more significant impact than its earlier bets. This trend of investment is reflective of the rapidly transforming landscape of AI technology, with Nvidia backing hot AI startups contributing to this transformation. Watchers of the industry are eagerly anticipating the upcoming quarterly earnings report from Nvidia, with analysts expecting year-over-year revenue growth of over 200% to exceed $20 billion.
Nvidia’s strategic investments in the AI space reflect the ongoing wave of irrational exuberance around AI technology and its potential to reshape various industries. As the company continues to bet big on AI-backed ventures, it is clear that the splurge in investments is part of a broader strategy to position Nvidia at the forefront of the AI revolution.