Pioneering tech and gamer hardware maker Nvidia Corp, by most accounts a driving force behind the AI explosion, has also bought into Arm Holdings Plc, SoundHound AI Inc., and the biotech firm Recursion Pharmaceuticals Inc., as shown in a recent Securities and Exchange Commission filing.
The disclosure reveals Nvidia’s investment strategy and continued enthusiasm for Arm following the collapse of its $40 billion proposed acquisition in 2020 because of regulatory roadblocks. In premarket trading, Arm shares rose by 2 percent.
This news excites SoundHound’s investors, whose shares soared by 55 percent in after-hours trading on Wednesday. For its part, Nvidia is betting strongly that SoundHound can emerge as a leader in the area of ‘AI for audio recognition,’ as demonstrated by its continued investment in the company: it was included on Nvidia’s disclosure form in 2017.
The most significant stake was in Arm Holdings, with an investment of $147.3 million. This was followed by Recursion Pharmaceuticals at $76 million and SoundHound at $3.67 million. Recursion Pharmaceuticals rose around 19{3f574ff2f8facd9278916d041166c0c3a91cafe51b66e81ac2010c5e5dcb222b} after the opening bell to trade at $12.95 a share in premarket trading. Those last details interest most donors, some of whom pledged money intending to see tangible effects.
The investment in electric automaker Lucid exceeding $1 billion was part of these significant investments that Nvidia disclosed alongside more minor holdings in several other companies, including the medical imaging developer Nano-X Imaging Ltd and the self-driving company TuSimple Holdings Inc. Nano-X was up as much as 49 percent, following disclosure.
Notwithstanding this failed bid by Nvidia, Arm’s initial public offering in 2023 would make it the largest IPO of that year before market volatility put a damper on things. Since SoftBank Group Corp purchased Arm for $32 billion in 2016, the stock has rallied, boosting Arm’s market valuation to nearly $130 billion and pushing the share price up more than two-thirds. Arm is majority-owned by SoftBank.
Source: Nick Turner, Bloomberg finance.yahoo.comFebruary 15, 2024 at 1:16 PM GMT+
