You're doing something right if your company is worth $2.6 trillion like S&P 500 champ Nvidia. And it's worth looking at the companies Nvidia itself is investing in.
Nvidia owns stakes in four U.S.-listed stocks — Arm Holdings, Recursion Pharmaceuticals, SoundHound AI and Serve Robotics — says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
One of these positions is up even more than shares of Nvidia. Shares of SoundHound AI — a maker of AI chat systems — has gained 131.8% so far this year. That's marginally better than the AI king's own shares — astonishingly up more than 130%.
If Nvidia thinks an investment is worthwhile, that speaks volumes. "The company remains the clear winner in the race to build out generative artificial intelligence capabilities," said Morningstar's Brian Colello.
Nvidia Is A Busy Investor, Too
Nvidia is best known for its popular AI chip designs. But it's been busily making investments, too.
The company holds current investments in more than 40 companies. And that doesn't even include its 87 current subsidiaries and operating units, plus 13 merged entities and pending acquisitions. But most of these positions are in private companies, not firms most investors can buy too. Four, though, are listed on U.S. exchanges.
Top Positions For S&P 500 Champ Nvidia
SoundHound AI is turning into quite a winner for investors like Nvidia.
The company makes AI products used to offer voices in automobiles, TV and customer service. The AI-generated voices are known for their lifelike, conversational tone. Analysts think the company will only lose 31 cents a share in 2024. That's slightly better than the 40 cents a share it lost in 2023. Revenue is projected to jump more than 50% to $70.5 million.
Arm Holdings is another winning position for Nvidia. Arm, which Nvidia tried to acquire in a deal blocked by regulators, has seen shares rise 65% this year. The company is the global leader in high-power semiconductors that are also energy efficient. Arm is expected to make $1.56 a share this fiscal year, up more than 22% from the prior year. The company went public last September.
Other Nvidia Positions
Some of Nvidia's positions are more surprising.
Nvidia owns more than 14% of Serve Robotics. The company just went public this year. It's in the business of making mobile robots used to deliver food. Shares of the money-losing company with very little revenue plummeted more than 80% from their initial public offering.
Nvidia's position in Recursion Pharmaceuticals is less painful. The stock is only down about 9% this year. The company is using high-tech methods to find treatments for rare diseases. Analysts think the company will lose $1.67 a share this year after losing $1.58 a share in 2023.
Should you invest in these stocks just because S&P 500 titan Nvidia is? Absolutely not. But when the king of AI makes moves, it pays to at least pay attention.
Nvidia's Portfolio Goes Beyond S&P 500
U.S.-listed stocks Nvidia is invested in
| Company | Symbol | YTD change | Primary industry |
|---|---|---|---|
| SoundHound AI | 131.8% | Application software | |
| Arm Holdings | 64.8% | Semiconductors | |
| Recursion Pharmaceuticals | -8.5% | Biotechnology | |
| Serve Robotics | N/A | Restaurants |
