Investors don't fully understand Nvidia (NVDA). Now, the company is extending that love to other stocks.
In a filing with the SEC on Wednesday night, the semiconductor manufacturing giant announced that as of Dec. 31, 2023, it would own ARM Holdings (ARM), Soundhound AI (SOUN), and biotech company Recursion Pharmaceuticals (RXRX). It has been revealed that he has invested in stocks.
All three AI-related stocks surfaced on this news. Arm's stock was up more than 6% on Thursday afternoon, having already risen more than 80% last month as the company blamed better-than-expected earnings on its AI initiatives. Recursion's stock price rose about 15%.
meanwhile, SoundHound, a small player focused on voice AI and speech recognition, made big gains. Stocks had their best day ever, surging about 80% before paring their gains to nearly 60% by Thursday afternoon.
Still, SoundHound's significant price movement, which has fallen more than 40% in the last year, reaffirms the market's enthusiasm for NVIDIA and other stocks related to it.
Nvidia stock is It's up nearly 50% since the beginning of 2024 and more than 220% over the past year. The company's market capitalization reached $1.8 trillion as of midday Thursday, recently surpassing the market caps of Amazon (AMZN) and Alphabet (GOOG, GOOGL). Currently, only Microsoft (MSFT) and Apple (AAPL) have higher valuations than Nvidia.
The company's revenue has increased significantly over the past year as demand for AI-powered chips soared. In the third quarter, Nvidia reported revenue of $18.12 billion, up 206% year over year. The company is scheduled to announce its quarterly results on February 21st.
Dan Ives, senior equity analyst at Wedbush Securities, said Nvidia's investment is a sign of approval from CEO Jensen Huang, the “godfather of AI,” and that it's a sign that investors will He said that it could be of great benefit to the
“We see this as a positive indicator. [SoundHound] “This investment further solidifies the company's brand in the AI revolution,” Ives wrote in a memo Thursday morning.
As of Dec. 31, Nvidia held nearly $3.67 million in SoundHound stock. Meanwhile, Arm and Recursion's total stakes totaled just over $147 million and $75.9 million, respectively.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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