Nvidia Is Buying Shares of These 5 AI Companies. Should You Do the Same?

Motley Fool07-10

Nvidia is investing in an intriguing array of smaller AI companies.Arm and SoundHound AI are the more established of these businesses.Nano-X, Recursion, and TuSimple are the more speculative plays....

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Sharkie
·07-11
the article is good if it's shared in Jan 2024 but the rally ( or sinking ) of the stocks have made the valuation not really attractive. This current bull maybe leading to the US presidential election and after Nov, the correction may take place.
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Should You Do the Same?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-10 23:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/07/10/nvidia-is-buying-shares-of-these-5-ai-companies/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia is investing in an intriguing array of smaller AI companies.Arm and SoundHound AI are the more established of these businesses.Nano-X, Recursion, and TuSimple are the more speculative plays....</p>\n\n<a href=\"https://www.fool.com/investing/2024/07/10/nvidia-is-buying-shares-of-these-5-ai-companies/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE0005OL40V9.USD","symbol_name":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","start_time":0,"source_url":"https://www.fool.com/investing/2024/07/10/nvidia-is-buying-shares-of-these-5-ai-companies/","article_id":"2450895068","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2450895068","pubTimestamp":1720624204,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"SoundHound AI, Arm, Nano-X, Recursion, and TuSimple are all in Nvidia's portfolio.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","BK4547":"WSB热门概念","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0057025933.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (USD) ACC","NNOX":"Nano-X Imaging Ltd.","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4581":"高盛持仓","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4529":"IDC概念","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","NVDA":"英伟达","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","BK4023":"应用软件","LU0069063385.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (USD) ACC","SOUN":"SoundHound AI Inc","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","BK4532":"文艺复兴科技持仓","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","BK4592":"伊斯兰概念","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4585":"ETF&股票定投概念","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4587":"ChatGPT概念","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0072462426.USD":"贝莱德全球配置 A2","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","RXRX":"Recursion Pharmaceuticals, Inc.","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4543":"AI","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","BK4527":"明星科技股","LU0061474960.USD":"天利环球焦点基金AU Acc","BK4579":"人工智能","LU0080751232.USD":"富达环球多元动力基金A","BK4588":"碎股","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00BYXW3230.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"AA\" (USD) ACC","ARM":"ARM Holdings","BK4503":"景林资产持仓","IE00BDRTCR15.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC A"},"translate_title":"英伟达正在购买这5家人工智能公司的股票。你也应该这样做吗？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RXRX":1.1,"NNOX":1.1,"ARM":0.9,"NVDA":0.9,"SOUN":0.61},"content_text":"Nvidia is investing in an intriguing array of smaller AI companies.Arm and SoundHound AI are the more established of these businesses.Nano-X, Recursion, and TuSimple are the more speculative plays.Nvidia (NVDA 2.48%) is one of the most closely watched companies in the world. It was once primarily known as a top supplier of gaming GPUs for PCs, but it subsequently evolved into the dominant producer of high-end data center GPUs.Nvidia now generates most of its revenue from its data center GPUs, and demand for those chips is still outstripping supply as the artificial intelligence (AI) market expands. That's why its stock rallied more than 3,000% over the past five years, and why it's considered a linchpin and bellwether of the AI industry.Image source: Getty Images.Nvidia could still have plenty of room to run as more companies launch AI applications, but the chipmaker has also been buying up shares of smaller AI companies. Let's look at five of those investments and see whether they could have a spot in your portfolio.Which five stocks did Nvidia invest in?In a 13F filing earlier this year, Nvidia disclosed its investments in five companies as of Dec. 31, 2023: SoundHound AI (SOUN -1.43%), Arm Holdings (ARM -1.31%), Recursion Pharmaceuticals (RXRX 0.54%), Nano-X Imaging (NNOX 5.44%), and TuSimple Holdings. Here's how much Nvidia invested in each of those companies, and how much their shares have rallied or declined since that disclosure.CompanyShares BoughtMarket Value 12/31/2023Market Value 7/6/2024Gain (Loss)SoundHound AI1,730,883$3.67 million$7.25 million98%Arm Holdings1,960,784$147.34 million$355.27 million141%Recursion Pharmaceuticals7,706,363$75.98 million$56.41 million(26%)Nano-X Imaging59,632$0.38 million$0.41 million8%TuSimple Holdings*3,465,372$3.04 million$0.87 million(71%)Data source: Nvidia. *TuSimple delisted itself from the Nasdaq and moved to the OTC market in January 2024.Some of these bets are more speculative than the othersSoundHound AI and Arm generated much bigger gains than the other three stocks. SoundHound develops audio and speech recognition technologies, and its Houndify platform has been used to create customized voice tools for automakers like Hyundai, smart-TV makers like Vizio, and fast-food chains like Church's Chicken.Arm designs power-efficient chips that are used in about 99% of the world's premium smartphones. Chipmakers like Qualcomm, MediaTek, and Apple all license Arm's designs for their own mobile chips. Nvidia also licenses Arm's designs for its Tegra CPUs, which are used in set-top boxes, Nintendo's Switch consoles, and automotive infotainment systems.Nvidia has been bullish on both of these AI companies for a long time. It was one of SoundHound's earliest investors when it was still a start-up, and it nearly acquired Arm for $40 billion before antitrust regulators scuttled the deal in 2022.Recursion, Nano-X, and TuSimple are smaller and more speculative companies. Recursion uses AI algorithms to process drug discovery tests, Nano-X is a producer of digital X-ray sources and develops AI tools for identifying undetected chronic diseases, and TuSimple is a Chinese autonomous trucking company.Which of these stocks are worth buying?Out of these five companies, only Arm is consistently profitable on a generally accepted accounting principles (GAAP) basis. Therefore, it's easier to compare these five stocks using their estimated revenue growth and enterprise values.CompanyRevenue (Last Fiscal Year)Enterprise ValueEV/Revenue Ratio (Current Fiscal Year)Estimated CAGR (Next 2 Fiscal Years)SoundHound AI$45.9 million$1.3 billion2050%Arm Holdings$3.2 billion$185.1 billion4723%Recursion Pharmaceuticals$44.6 million$1.6 billion2719%Nano-X Imaging$9.9 million$395.3 million25130%TuSimple Holdings$0.3 million$60.9 million198N/A*Data source: Marketscreener. *Due to delisting from Nasdaq. CAGR = compound annual growth rate.None of these stocks look cheap right now, but SoundHound arguably looks like the most reasonably valued one relative to its growth potential. Arm runs a more stable business, but its valuation has been inflated by the buying frenzy in AI stocks.Recursion and Nano-X are developing promising technologies, but they haven't scaled up their businesses yet. As for TuSimple, the autonomous trucking company was caught in the crossfire of the escalating tech war between the U.S. and China, and it voluntarily delisted its shares from the Nasdaq earlier this year. That lack of visibility, along with its steep losses and sky-high valuation, make it a tough stock to recommend.Should you follow Nvidia's lead?These five stocks are all tiny investments for Nvidia, which ended its latest quarter with $7.59 billion in cash and equivalents. The GPU giant won't lose much sleep if one of these companies goes under, but growth-oriented investors should stick with the two most established companies -- namely, Arm and SoundHound -- and simply keep an eye on the more speculative ones for now.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":326155441447224,"gmtCreate":1720651876283,"gmtModify":1720651885419,"author":{"id":"3570070988174561","authorId":"3570070988174561","name":"Sharkie","avatar":"https://static.tigerbbs.com/631c9e9d4680a952704a2d3eef7bfbc8","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3570070988174561","authorIdStr":"3570070988174561"},"htmlText":"the article is good if it's shared in Jan 2024 but the rally ( or sinking ) of the stocks have made the valuation not really attractive. This current bull maybe leading to the US presidential election and after Nov, the correction may take place.&nbsp;","listText":"the article is good if it's shared in Jan 2024 but the rally ( or sinking ) of the stocks have made the valuation not really attractive. This current bull maybe leading to the US presidential election and after Nov, the correction may take place.&nbsp;","text":"the article is good if it's shared in Jan 2024 but the rally ( or sinking ) of the stocks have made the valuation not really attractive. This current bull maybe leading to the US presidential election and after Nov, the correction may take place.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/326155441447224","repostId":2450895068,"repostType":4,"repost":{"id":"2450895068","kind":"highlight","pubTimestamp":1720624204,"share":"https://ttm.financial/m/news/2450895068?lang=&edition=fundamental","pubTime":"2024-07-10 23:10","market":"us","language":"en","title":"Nvidia Is Buying Shares of These 5 AI Companies. Should You Do the Same?","url":"https://stock-news.laohu8.com/highlight/detail?id=2450895068","media":"Motley Fool","summary":"SoundHound AI, Arm, Nano-X, Recursion, and TuSimple are all in Nvidia's portfolio.","content":"<html><head></head><body><ul style=\"\"><li><p>Nvidia is investing in an intriguing array of smaller AI companies.</p></li><li><p>Arm and SoundHound AI are the more established of these businesses.</p></li><li><p>Nano-X, Recursion, and TuSimple are the more speculative plays.</p></li></ul><p><strong>Nvidia</strong> (NVDA 2.48%) is one of the most closely watched companies in the world. It was once primarily known as a top supplier of gaming GPUs for PCs, but it subsequently evolved into the dominant producer of high-end data center GPUs.</p><p>Nvidia now generates most of its revenue from its data center GPUs, and demand for those chips is still outstripping supply as the artificial intelligence (AI) market expands. That&#39;s why its stock rallied more than 3,000% over the past five years, and why it&#39;s considered a linchpin and bellwether of the AI industry.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/735eb1b3208fe19ce86b67d7a22f934d\" tg-width=\"700\" tg-height=\"372\"/></p><p>Image source: Getty Images.</p><p>Nvidia could still have plenty of room to run as more companies launch AI applications, but the chipmaker has also been buying up shares of smaller AI companies. Let&#39;s look at five of those investments and see whether they could have a spot in your portfolio.</p><h2 id=\"id_1928650652\">Which five stocks did Nvidia invest in?</h2><p>In a 13F filing earlier this year, Nvidia disclosed its investments in five companies as of Dec. 31, 2023: <strong>SoundHound AI</strong> (SOUN -1.43%), <strong>Arm Holdings</strong> (ARM -1.31%), <strong>Recursion Pharmaceuticals</strong> (RXRX 0.54%), <strong>Nano-X Imaging</strong> (NNOX 5.44%), and <strong>TuSimple Holdings</strong>. Here&#39;s how much Nvidia invested in each of those companies, and how much their shares have rallied or declined since that disclosure.</p><table style=\"border-collapse:collapse;\"><colgroup><col width=\"149\"/><col width=\"96\"/><col width=\"117\"/><col width=\"105\"/><col width=\"81\"/></colgroup><tbody><tr><th data-colwidth=\"149\" style=\"text-align:left;width:149px;\"><p>Company</p></th><th data-colwidth=\"96\" style=\"text-align:left;width:96px;\"><p>Shares Bought</p></th><th data-colwidth=\"117\" style=\"text-align:left;width:117px;\"><p>Market Value 12/31/2023</p></th><th data-colwidth=\"105\" style=\"text-align:left;width:105px;\"><p>Market Value 7/6/2024</p></th><th data-colwidth=\"81\" style=\"text-align:left;width:81px;\"><p>Gain (Loss)</p></th></tr><tr><td data-colwidth=\"149\" style=\"text-align:left;width:149px;\"><p>SoundHound AI</p></td><td data-colwidth=\"96\" style=\"text-align:left;width:96px;\"><p>1,730,883</p></td><td data-colwidth=\"117\" style=\"text-align:left;width:117px;\"><p>$3.67 million</p></td><td data-colwidth=\"105\" style=\"text-align:left;width:105px;\"><p>$7.25 million</p></td><td data-colwidth=\"81\" style=\"text-align:left;width:81px;\"><p>98%</p></td></tr><tr><td data-colwidth=\"149\" style=\"text-align:left;width:149px;\"><p>Arm Holdings</p></td><td data-colwidth=\"96\" style=\"text-align:left;width:96px;\"><p>1,960,784</p></td><td data-colwidth=\"117\" style=\"text-align:left;width:117px;\"><p>$147.34 million</p></td><td data-colwidth=\"105\" style=\"text-align:left;width:105px;\"><p>$355.27 million</p></td><td data-colwidth=\"81\" style=\"text-align:left;width:81px;\"><p>141%</p></td></tr><tr><td data-colwidth=\"149\" style=\"text-align:left;width:149px;\"><p>Recursion Pharmaceuticals</p></td><td data-colwidth=\"96\" style=\"text-align:left;width:96px;\"><p>7,706,363</p></td><td data-colwidth=\"117\" style=\"text-align:left;width:117px;\"><p>$75.98 million</p></td><td data-colwidth=\"105\" style=\"text-align:left;width:105px;\"><p>$56.41 million</p></td><td data-colwidth=\"81\" style=\"text-align:left;width:81px;\"><p>(26%)</p></td></tr><tr><td data-colwidth=\"149\" style=\"text-align:left;width:149px;\"><p>Nano-X Imaging</p></td><td data-colwidth=\"96\" style=\"text-align:left;width:96px;\"><p>59,632</p></td><td data-colwidth=\"117\" style=\"text-align:left;width:117px;\"><p>$0.38 million</p></td><td data-colwidth=\"105\" style=\"text-align:left;width:105px;\"><p>$0.41 million</p></td><td data-colwidth=\"81\" style=\"text-align:left;width:81px;\"><p>8%</p></td></tr><tr><td data-colwidth=\"149\" style=\"text-align:left;width:149px;\"><p>TuSimple Holdings*</p></td><td data-colwidth=\"96\" style=\"text-align:left;width:96px;\"><p>3,465,372</p></td><td data-colwidth=\"117\" style=\"text-align:left;width:117px;\"><p>$3.04 million</p></td><td data-colwidth=\"105\" style=\"text-align:left;width:105px;\"><p>$0.87 million</p></td><td data-colwidth=\"81\" style=\"text-align:left;width:81px;\"><p>(71%)</p></td></tr></tbody></table><p>Data source: Nvidia. *TuSimple delisted itself from the Nasdaq and moved to the OTC market in January 2024.</p><h2 id=\"id_4074189396\">Some of these bets are more speculative than the others</h2><p>SoundHound AI and Arm generated much bigger gains than the other three stocks. SoundHound develops audio and speech recognition technologies, and its Houndify platform has been used to create customized voice tools for automakers like <strong>Hyundai</strong>, smart-TV makers like <strong>Vizio</strong>, and fast-food chains like Church&#39;s Chicken.</p><p>Arm designs power-efficient chips that are used in about 99% of the world&#39;s premium smartphones. Chipmakers like <strong>Qualcomm</strong>, MediaTek, and <strong>Apple </strong>all license Arm&#39;s designs for their own mobile chips. Nvidia also licenses Arm&#39;s designs for its Tegra CPUs, which are used in set-top boxes, <strong>Nintendo</strong>&#39;s Switch consoles, and automotive infotainment systems.</p><p>Nvidia has been bullish on both of these AI companies for a long time. It was one of SoundHound&#39;s earliest investors when it was still a start-up, and it nearly acquired Arm for $40 billion before antitrust regulators scuttled the deal in 2022.</p><p>Recursion, Nano-X, and TuSimple are smaller and more speculative companies. Recursion uses AI algorithms to process drug discovery tests, Nano-X is a producer of digital X-ray sources and develops AI tools for identifying undetected chronic diseases, and TuSimple is a Chinese autonomous trucking company.</p><h2 id=\"id_291322146\">Which of these stocks are worth buying?</h2><p>Out of these five companies, only Arm is consistently profitable on a generally accepted accounting principles (GAAP) basis. Therefore, it&#39;s easier to compare these five stocks using their estimated revenue growth and enterprise values.</p><table style=\"border-collapse:collapse;\"><colgroup><col width=\"142\"/><col width=\"103\"/><col width=\"93\"/><col width=\"95\"/><col width=\"112\"/></colgroup><tbody><tr><th data-colwidth=\"142\" style=\"text-align:left;width:142px;\"><p>Company</p></th><th data-colwidth=\"103\" style=\"text-align:left;width:103px;\"><p>Revenue (Last Fiscal Year)</p></th><th data-colwidth=\"93\" style=\"text-align:left;width:93px;\"><p>Enterprise Value</p></th><th data-colwidth=\"95\" style=\"text-align:left;width:95px;\"><p>EV/Revenue Ratio (Current Fiscal Year)</p></th><th data-colwidth=\"112\" style=\"text-align:left;width:112px;\"><p>Estimated CAGR (Next 2 Fiscal Years)</p></th></tr><tr><td data-colwidth=\"142\" style=\"text-align:left;width:142px;\"><p>SoundHound AI</p></td><td data-colwidth=\"103\" style=\"text-align:left;width:103px;\"><p>$45.9 million</p></td><td data-colwidth=\"93\" style=\"text-align:left;width:93px;\"><p>$1.3 billion</p></td><td data-colwidth=\"95\" style=\"text-align:left;width:95px;\"><p>20</p></td><td data-colwidth=\"112\" style=\"text-align:left;width:112px;\"><p>50%</p></td></tr><tr><td data-colwidth=\"142\" style=\"text-align:left;width:142px;\"><p>Arm Holdings</p></td><td data-colwidth=\"103\" style=\"text-align:left;width:103px;\"><p>$3.2 billion</p></td><td data-colwidth=\"93\" style=\"text-align:left;width:93px;\"><p>$185.1 billion</p></td><td data-colwidth=\"95\" style=\"text-align:left;width:95px;\"><p>47</p></td><td data-colwidth=\"112\" style=\"text-align:left;width:112px;\"><p>23%</p></td></tr><tr><td data-colwidth=\"142\" style=\"text-align:left;width:142px;\"><p>Recursion Pharmaceuticals</p></td><td data-colwidth=\"103\" style=\"text-align:left;width:103px;\"><p>$44.6 million</p></td><td data-colwidth=\"93\" style=\"text-align:left;width:93px;\"><p>$1.6 billion</p></td><td data-colwidth=\"95\" style=\"text-align:left;width:95px;\"><p>27</p></td><td data-colwidth=\"112\" style=\"text-align:left;width:112px;\"><p>19%</p></td></tr><tr><td data-colwidth=\"142\" style=\"text-align:left;width:142px;\"><p>Nano-X Imaging</p></td><td data-colwidth=\"103\" style=\"text-align:left;width:103px;\"><p>$9.9 million</p></td><td data-colwidth=\"93\" style=\"text-align:left;width:93px;\"><p>$395.3 million</p></td><td data-colwidth=\"95\" style=\"text-align:left;width:95px;\"><p>25</p></td><td data-colwidth=\"112\" style=\"text-align:left;width:112px;\"><p>130%</p></td></tr><tr><td data-colwidth=\"142\" style=\"text-align:left;width:142px;\"><p>TuSimple Holdings</p></td><td data-colwidth=\"103\" style=\"text-align:left;width:103px;\"><p>$0.3 million</p></td><td data-colwidth=\"93\" style=\"text-align:left;width:93px;\"><p>$60.9 million</p></td><td data-colwidth=\"95\" style=\"text-align:left;width:95px;\"><p>198</p></td><td data-colwidth=\"112\" style=\"text-align:left;width:112px;\"><p>N/A*</p></td></tr></tbody></table><p>Data source: Marketscreener. *Due to delisting from Nasdaq. CAGR = compound annual growth rate.</p><p>None of these stocks look cheap right now, but SoundHound arguably looks like the most reasonably valued one relative to its growth potential. Arm runs a more stable business, but its valuation has been inflated by the buying frenzy in AI stocks.</p><p>Recursion and Nano-X are developing promising technologies, but they haven&#39;t scaled up their businesses yet. As for TuSimple, the autonomous trucking company was caught in the crossfire of the escalating tech war between the U.S. and China, and it voluntarily delisted its shares from the Nasdaq earlier this year. That lack of visibility, along with its steep losses and sky-high valuation, make it a tough stock to recommend.</p><h2 id=\"id_3092480182\">Should you follow Nvidia&#39;s lead?</h2><p>These five stocks are all tiny investments for Nvidia, which ended its latest quarter with $7.59 billion in cash and equivalents. The GPU giant won&#39;t lose much sleep if one of these companies goes under, but growth-oriented investors should stick with the two most established companies -- namely, Arm and SoundHound -- and simply keep an eye on the more speculative ones for now.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia Is Buying Shares of These 5 AI Companies. Should You Do the Same?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia Is Buying Shares of These 5 AI Companies. Should You Do the Same?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-10 23:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/07/10/nvidia-is-buying-shares-of-these-5-ai-companies/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia is investing in an intriguing array of smaller AI companies.Arm and SoundHound AI are the more established of these businesses.Nano-X, Recursion, and TuSimple are the more speculative plays....</p>\n\n<a href=\"https://www.fool.com/investing/2024/07/10/nvidia-is-buying-shares-of-these-5-ai-companies/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","BK4547":"WSB热门概念","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0057025933.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (USD) ACC","NNOX":"Nano-X Imaging Ltd.","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4581":"高盛持仓","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4529":"IDC概念","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","NVDA":"英伟达","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","BK4023":"应用软件","LU0069063385.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (USD) ACC","SOUN":"SoundHound AI Inc","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","BK4532":"文艺复兴科技持仓","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","BK4592":"伊斯兰概念","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4585":"ETF&股票定投概念","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4587":"ChatGPT概念","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0072462426.USD":"贝莱德全球配置 A2","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","RXRX":"Recursion Pharmaceuticals, Inc.","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4543":"AI","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","BK4527":"明星科技股","LU0061474960.USD":"天利环球焦点基金AU Acc","BK4579":"人工智能","LU0080751232.USD":"富达环球多元动力基金A","BK4588":"碎股","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00BYXW3230.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"AA\" (USD) ACC","ARM":"ARM Holdings","BK4503":"景林资产持仓","IE00BDRTCR15.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC A"},"source_url":"https://www.fool.com/investing/2024/07/10/nvidia-is-buying-shares-of-these-5-ai-companies/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2450895068","content_text":"Nvidia is investing in an intriguing array of smaller AI companies.Arm and SoundHound AI are the more established of these businesses.Nano-X, Recursion, and TuSimple are the more speculative plays.Nvidia (NVDA 2.48%) is one of the most closely watched companies in the world. It was once primarily known as a top supplier of gaming GPUs for PCs, but it subsequently evolved into the dominant producer of high-end data center GPUs.Nvidia now generates most of its revenue from its data center GPUs, and demand for those chips is still outstripping supply as the artificial intelligence (AI) market expands. That's why its stock rallied more than 3,000% over the past five years, and why it's considered a linchpin and bellwether of the AI industry.Image source: Getty Images.Nvidia could still have plenty of room to run as more companies launch AI applications, but the chipmaker has also been buying up shares of smaller AI companies. Let's look at five of those investments and see whether they could have a spot in your portfolio.Which five stocks did Nvidia invest in?In a 13F filing earlier this year, Nvidia disclosed its investments in five companies as of Dec. 31, 2023: SoundHound AI (SOUN -1.43%), Arm Holdings (ARM -1.31%), Recursion Pharmaceuticals (RXRX 0.54%), Nano-X Imaging (NNOX 5.44%), and TuSimple Holdings. Here's how much Nvidia invested in each of those companies, and how much their shares have rallied or declined since that disclosure.CompanyShares BoughtMarket Value 12/31/2023Market Value 7/6/2024Gain (Loss)SoundHound AI1,730,883$3.67 million$7.25 million98%Arm Holdings1,960,784$147.34 million$355.27 million141%Recursion Pharmaceuticals7,706,363$75.98 million$56.41 million(26%)Nano-X Imaging59,632$0.38 million$0.41 million8%TuSimple Holdings*3,465,372$3.04 million$0.87 million(71%)Data source: Nvidia. *TuSimple delisted itself from the Nasdaq and moved to the OTC market in January 2024.Some of these bets are more speculative than the othersSoundHound AI and Arm generated much bigger gains than the other three stocks. SoundHound develops audio and speech recognition technologies, and its Houndify platform has been used to create customized voice tools for automakers like Hyundai, smart-TV makers like Vizio, and fast-food chains like Church's Chicken.Arm designs power-efficient chips that are used in about 99% of the world's premium smartphones. Chipmakers like Qualcomm, MediaTek, and Apple all license Arm's designs for their own mobile chips. Nvidia also licenses Arm's designs for its Tegra CPUs, which are used in set-top boxes, Nintendo's Switch consoles, and automotive infotainment systems.Nvidia has been bullish on both of these AI companies for a long time. It was one of SoundHound's earliest investors when it was still a start-up, and it nearly acquired Arm for $40 billion before antitrust regulators scuttled the deal in 2022.Recursion, Nano-X, and TuSimple are smaller and more speculative companies. Recursion uses AI algorithms to process drug discovery tests, Nano-X is a producer of digital X-ray sources and develops AI tools for identifying undetected chronic diseases, and TuSimple is a Chinese autonomous trucking company.Which of these stocks are worth buying?Out of these five companies, only Arm is consistently profitable on a generally accepted accounting principles (GAAP) basis. Therefore, it's easier to compare these five stocks using their estimated revenue growth and enterprise values.CompanyRevenue (Last Fiscal Year)Enterprise ValueEV/Revenue Ratio (Current Fiscal Year)Estimated CAGR (Next 2 Fiscal Years)SoundHound AI$45.9 million$1.3 billion2050%Arm Holdings$3.2 billion$185.1 billion4723%Recursion Pharmaceuticals$44.6 million$1.6 billion2719%Nano-X Imaging$9.9 million$395.3 million25130%TuSimple Holdings$0.3 million$60.9 million198N/A*Data source: Marketscreener. *Due to delisting from Nasdaq. CAGR = compound annual growth rate.None of these stocks look cheap right now, but SoundHound arguably looks like the most reasonably valued one relative to its growth potential. Arm runs a more stable business, but its valuation has been inflated by the buying frenzy in AI stocks.Recursion and Nano-X are developing promising technologies, but they haven't scaled up their businesses yet. As for TuSimple, the autonomous trucking company was caught in the crossfire of the escalating tech war between the U.S. and China, and it voluntarily delisted its shares from the Nasdaq earlier this year. That lack of visibility, along with its steep losses and sky-high valuation, make it a tough stock to recommend.Should you follow Nvidia's lead?These five stocks are all tiny investments for Nvidia, which ended its latest quarter with $7.59 billion in cash and equivalents. The GPU giant won't lose much sleep if one of these companies goes under, but growth-oriented investors should stick with the two most established companies -- namely, Arm and SoundHound -- and simply keep an eye on the more speculative ones for now.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":14,"commentSize":1,"repostSize":0,"favoriteSize":3,"likeStatus":false,"favoriteStatus":false}}