Nvidia strengthens its investments in the field of artificial intelligence through new stakes in 3 companies.
Nvidia, the giant in chip manufacturing and a leader in spending on artificial intelligence technologies,
announced the enhancement of its investments by acquiring stakes in three major companies:
ARM Holdings, SoundHound AI, and Recursion Pharmaceuticals.
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Nvidia revealed this information in its annual report, Form 13F, submitted to the U.S. Securities and Exchange Commission on Wednesday,
outlining a new investment strategy for the company that has garnered significant global attention.
This move comes after Nvidia’s unsuccessful attempt to acquire ARM for $40 billion in 2020,
a deal that was abandoned in February 2022 due to regulatory pressures.
Meanwhile, shares of SoundHound surged by 55% following the investment announcement.
SoundHound specializes in AI software for voice recognition, with Nvidia making its initial investment in the company back in 2017.
Nvidia’s stake in ARM is the largest among the three, valued at $147.3 million, compared to $76 million in Recursion and $3.67 million in SoundHound.
Nvidia also disclosed acquiring smaller stakes in Nano-X Imaging and TuSimple Holdings.
Additionally, Nvidia has become the fourth-largest company by market capitalization globally,
surpassing Alphabet and Amazon, reaching a market value of $1.83 trillion.
This strong surge in stock value is attributed to the continued demand for Nvidia’s accelerators in running data centers and AI applications.
Amid this rapid ascent, analysts anticipate a sustained strong demand for Nvidia’s products,
with brokerage firms raising their target stock prices and improving revenue forecasts for 2024 by over 100%, according to data compiled by Bloomberg.
While other major technology companies are performing well in the stock market in 2024,
Nvidia stands out as a company experiencing significant growth in its revenues from smart technology.
Nvidia strengthens its investments in the field of artificial intelligence