Nvidia sells SoundHound, cuts stake in Arm and buys two new shares

In its latest filing with the US Securities and Exchange Commission (SEC), Nvidia, a leading manufacturer of artificial intelligence chips, announced that it made significant changes to its investment portfolio in the fourth quarter of 2024.

The firm sold its stakes in three technology companies, reduced its stake in Arm Holdings and instead invested in two new companies with growth potential in the AI space. The move suggests that Nvidia is looking to redirect its investments into areas with higher growth potential and strengthen its position in the AI market.

Nvidia has decided to completely divest its stakes in three companies. The first is Nano-X Imaging $NNOX, a company focused on innovative medical imaging technologies. It aims to bring revolutionary advances in X-ray imaging using advanced artificial intelligence that could streamline diagnosis and reduce healthcare costs.

Another company that Nvidia sold is Serve Robotics $SERV, a maker of autonomous delivery robots designed to transport packages along the sidewalks of urban areas.

The third company sold is SoundHound AI $SOUN, which develops voice-controlled conversational technologies used in automotive and automated ordering systems in fast-food restaurants. In addition to these sales, Nvidia also reduced its stake in Arm Holdings $ARM, a key player in processor architectures used in mobile devices, servers and AI accelerators.

At the same time, Nvidia expanded its portfolio with two new companies. The first is WeRide $WRD, a Chinese startup focused on autonomous driving. WeRide is looking to build a global network of robotaxis and already operates self-driving vehicles in thirty cities across nine countries.

The other new acquisition is Nebius Group $NBIS, a firm specializing in providing cloud infrastructure for AI computing and data centers. Its technologies are designed to efficiently handle the challenging tasks associated with artificial intelligence and processing huge volumes of data.

The market reacted immediately to these changes and significantly impacted the stock price of each company. Shares of WeRide shot up 83.5% to $31.50 following the announcement, while Nebius gained 6.7% to $44.49. Conversely, the companies that Nvidia divested saw declines - Nano-X Imaging fell 11% to $6.72, Serve Robotics fell 39.6% to $13.85, and SoundHound saw a 28.1% loss, closing at $10.97.

Overall, Nvidia appears to be adjusting its investment focus to match future trends in AI, autonomous technology and cloud infrastructure. The shift of capital into WeRide and Nebius suggests that the company sees significant growth potential in these areas, while the divestment of older holdings points to a strategic redirection of investments towards more modern and forward-looking technologies.

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Source: investors.com