Investors are riding high on Nvidia’s (NVDA) success, and the chipmaking giant is extending its influence to propel other stocks to new heights. According to an SEC filing on Wednesday night, Nvidia held investments in Arm Holdings (ARM), SoundHound AI (SOUN), and Recursion Pharmaceuticals (RXRX) as of December 31, 2023.
The news sparked positive movements in the AI-related stocks, with Arm experiencing a 1% gain, and Recursion Pharmaceuticals witnessing a nearly 10% rise. Notably, SoundHound AI, specializing in voice AI and speech recognition, soared by a staggering 80%, marking one of its best days ever.
Nvidia’s shares have surged by almost 50% since the beginning of 2024 and an impressive 220% in the past year. With a market cap of $1.8 trillion as of Thursday midday, Nvidia has surpassed the valuation of Amazon (AMZN) and Alphabet (GOOG, GOOGL), trailing only Microsoft (MSFT) and Apple (AAPL).
The chip giant’s revenue has skyrocketed, reaching $18.12 billion in the third quarter, a remarkable 206% increase from a year ago. Investors eagerly await Nvidia’s quarterly results on Feb. 21.
Wedbush Securities senior equity analyst Dan Ives sees Nvidia’s investments as a significant nod from the “Godfather of AI,” CEO Jensen Huang. Ives notes that this move further solidifies SoundHound’s brand within the AI Revolution. Nvidia’s stakes in SoundHound, Arm, and Recursion amounted to nearly $3.67 million, over $147 million, and $75.9 million, respectively, as of December 31.
