Home Tags Posts tagged with "stock markets"

stock markets

Influencing the artificial intelligence (AI) landscape, Nvidia, the world’s leading AI chipmaker, has disclosed stakes in several smaller AI companies, triggering a rally in their stock prices. The revelation, made in a 13F filing on Wednesday, provides insights into Nvidia’s strategic growth plans, particularly as the company cements its position as the third most valuable U.S. company, experiencing rapid market value expansion.

Nvidia’s largest disclosed investment, totaling $147.3 million, was in Arm Holdings, a chip designer that Nvidia attempted to acquire for $80 billion two years ago. Despite the deal facing antitrust challenges and ultimately failing, Nvidia’s continued interest in Arm is evident. The disclosure showcases Nvidia’s diversification into various companies, a move that analysts believe could lead to the development of more affordable and hyper-focused chipsets tailored for specific applications, rather than general-purpose AI chips.

Several AI-related companies witnessed a surge in their stock prices following Nvidia’s disclosure. Recursion Pharmaceuticals, a biotech firm in which Nvidia invested nearly $76 million, experienced a 5% gain. Nvidia’s investment in Recursion last year aimed to accelerate the training of the firm’s AI models for drug discovery.

Conversational voice assistants developer SoundHound AI saw its shares skyrocket by 50% to $3.33 after Nvidia invested nearly $3.7 million. Similarly, Nvidia’s stake in Israel-based medical device company Nano-X Imaging, which utilizes AI software for report analysis, led to a remarkable 52% increase in Nano-X’s shares.

Autonomous driving technology firm TuSimple Holdings, which recently delisted from the Nasdaq, drew $3 million in capital from Nvidia. The diverse investments by Nvidia indicate a strategic portfolio approach, supporting companies in need of capital and potentially yielding both winners and losers.

Rick Meckler, a partner at Cherry Lane Investments, noted that an investment from Nvidia is viewed positively by investors and can aid companies in raising capital. The disclosed stakes by Nvidia also attracted attention from retail traders, with SoundHound and Nano-X Imaging ranking among the top five most actively traded stocks by individual investors.

The surge in AI-related stocks extended beyond those directly invested in by Nvidia, with Guardforce AI witnessing an 11% increase and BigBear.ai Holdings gaining 10.3%. Notably, several prominent funds, including Rokos Capital Management and Bridgewater Associates, also invested in Nvidia toward the end of 2023, further solidifying the chipmaker’s prominence in the AI landscape.

0 comment
0 FacebookTwitterPinterestEmail

Nvidia, the leading AI chipmaker, has outpaced Google-parent Alphabet, securing the coveted spot as the third most valuable company in the United States. The remarkable ascent occurred as Nvidia’s share price surged by 2.46%, driving its market capitalization to an impressive $1.825 trillion. In contrast, Alphabet experienced a more modest 0.55% increase, reaching a market value of $1.821 trillion.

This development follows Nvidia’s recent milestone of surpassing Amazon in market capitalization just a day earlier. Amazon, with a market cap of $1.776 trillion, saw its stock rise by 1.39% on the same day. Nvidia’s rise is emblematic of its exceptional performance in the stock market, witnessing a 47% surge in share price this year after a remarkable triple-fold increase in 2023. The surge is attributed to robust demand for Nvidia’s chips, solidifying the company’s dominance with control over approximately 80% of the high-end AI chip market.

The company is currently contending with shortages of its premium components, posing challenges for customers seeking Nvidia’s top-of-the-line products. AI developers are reportedly facing extended waiting lists to access Nvidia’s processors through cloud-computing providers, underscoring the soaring demand for the company’s offerings.

Notably, technology-focused companies such as Microsoft and Meta Platforms have experienced surges in their stock values, reaching record highs amid heightened optimism surrounding artificial intelligence.

Investors are now eagerly anticipating Nvidia’s upcoming quarterly earnings report scheduled for next Wednesday. Analysts are optimistic about the company’s performance, expecting another stellar quarter and a positive outlook. Forecasts for Nvidia’s January fiscal quarter revenue project a staggering triple-fold increase to $20.37 billion, fueled by the relentless demand for its high-end AI chips. Adjusted net profit estimates suggest a remarkable surge of over 400% to $11.38 billion.

It’s important to mention that Microsoft, valued at over $3 trillion, previously overtook Apple in January to become the world’s most valuable company. The current standings list Saudi Aramco as the world’s third most valuable publicly-listed company, as per the London Stock Exchange Group. Nvidia’s ascent further underscores the dynamic landscape of the tech industry, driven by the escalating demand for advanced AI solutions.

0 comment
0 FacebookTwitterPinterestEmail

Our News Portal

We provide accurate, balanced, and impartial coverage of national and international affairs, focusing on the activities and developments within the parliament and its surrounding political landscape. We aim to foster informed public discourse and promote transparency in governance through our news articles, features, and opinion pieces.


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Laest News

@2023 – All Right Reserved. Designed and Developed by The Parliament News

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Update Required Flash plugin