Nvidia: The Ultimate AI Stock and Its 5 Other Investments
Nvidia (NASDAQ: NVDA) has been skyrocketing in the stock market lately, climbing up almost 1,800% in the past five years and more than tripling in the last year. And it’s no wonder, given investors’ obsession with AI. Nvidia can attribute much of its revenue surge to AI and is expected to report a 231% increase in year-over-year revenue in 2024, which is huge for a company of its size.
Investing in Nvidia seems like a no-brainer in the current AI craze, but did you know that Nvidia is investing in five other AI companies? In its first 13F filing with the Securities and Exchange Commission, Nvidia revealed its stock portfolio, worth $230 million and consisting of five AI-related stocks.
The AI Portfolio: Unpacked
Nvidia’s largest investment is Arm Holdings (NASDAQ: ARM), worth $147 million in the stock market. Then there’s Recursion Pharmaceuticals (NASDAQ: RXRX), SoundHound AI (NASDAQ: SOUN), TuSimple Holdings, and Nano-X Imaging (NASDAQ: NNOX) — all linked to AI in unique ways.
High Risk, High Reward
Recursion Pharmaceuticals and Nano-X Imaging are particularly high-risk and high-reward, especially in the medical field, where AI can make groundbreaking discoveries using massive datasets. Ponder this: Recursion partnered with Nvidia and Tempus to access 20 million gigabytes of oncology data for cancer research. Nano-X is also set to revolutionize medical imaging through AI.
What’s the Catch?
Sure, the investment in these AI stocks looks promising, but each comes with massive losses and meager revenue streams, making them no walk in the park. But considering the almost-potential impact on medical breakthroughs, the stocks are worth a risk.
But Should You Invest in Nvidia?
So, while everyone is piling into Nvidia stock, the bigger question is: should you? If you’re on the sidelines, The Motley Fool Stock Advisor team has identified what they believe are the 10 best stocks to buy now. Nvidia isn’t one of them, but the report has more than tripled the return of S&P 500 since 2002.
To buy or not to buy that is the question-what do you think? Which of the AI stocks in Nvidia’s portfolio do you find most intriguing? Let us know in the comments!
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