Investors can’t get enough of Nvidia (NVDA). Now, the company is spreading that love to other stocks.
On Wednesday night, an SEC filing revealed the chipmaking giant held investments in the stocks Arm Holdings (ARM), SoundHound AI (SOUN), and biotech company Recursion Pharmaceuticals (RXRX) as of Dec. 31, 2023.
All three of the AI-related stocks popped on the news. Arm, whose stock was already up more than 80% in the last month after the company attributed its better-than-expected revenue expectations to AI initiatives, saw was up more than 6% on Thursday afternoon. Recursion’s stock rose almost 15%.
Meanwhile,SoundHound, a smaller player that specializes in voice AI and speech recognition, saw a huge gain. The stock was on track for its best day ever at the open, popping about 80% before paring gains to nearly 60% on Thursday afternoon.
Still, the massive price move in SoundHound, which had been down more than 40% over the last year, reaffirms market enthusiasm for Nvidia and other names associated with the stock.
Nvidia shares areup nearly 50% since the start of 2024 and more than 220% in the past year. The company’s market cap — which stood at $1.8 trillion as of Thursday midday — recently surpassed that of Amazon (AMZN) and Alphabet (GOOG, GOOGL). Only Microsoft (MSFT) and Apple (AAPL) now have a higher valuation than Nvidia.
The company’s revenue has increased significantly over the past year as demand for its AI-powered chips has soared. In the third quarter, Nvidia reported revenue of $18.12 billion, up 206% from a year ago. The company is set to report quarterly results on Feb. 21.
Wedbush Securities senior equity analyst Dan Ives said that Nvidia’s investments signal a stamp of approval from the “Godfather of AI,” CEO Jensen Huang —and that can go a long way with investors.
“We view this as a positive indicator for [SoundHound] as this investment now further solidifies the company’s brand within the AI Revolution,” Ives wrote in a note on Thursday morning.
As of Dec. 31, Nvidia had a nearly $3.67 million stake in SoundHound. Meanwhile, its stakes in Arm and Recursion totaled just over $147 million and $75.9 million, respectively.
Nvidia’s logo is seen displayed on a mobile phone screen with AI written in the background. (Idrees Abbas/SOPA Images/LightRocket via Getty Images) (SOPA Images via Getty Images)
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
