**AI INVESTMENT BOOSTS STOCKS**
Investors can’t get enough of Nvidia, and now the company is spreading the love to other stocks. On Wednesday, an SEC filing revealed that the chipmaking giant held investments in the stocks Arm Holdings, SoundHound AI, and biotech company Recursion Pharmaceuticals as of Dec. 31, 2023. All three of these AI-related stocks saw a pop after the news broke, as Arm and Recursion’s stocks both rose on the announcement. However, SoundHound saw the biggest gain, on track for its best day ever with a nearly 80% gain at the open.
**MARKET ENTHUSIASM**
The massive price move in SoundHound reaffirms market enthusiasm for Nvidia and other names associated with the stock. Nvidia’s shares are up nearly 50% since the start of 2024 and more than 220% in the past year. The company’s market cap recently surpassed that of Amazon and Alphabet, with only Microsoft and Apple now having a higher valuation. The company’s revenue has increased significantly over the past year as demand for its AI-powered chips has soared, with an increase of 206% from a year ago in the third quarter.
**POSITIVE INDICATOR**
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. Ives added that this can go a long way with investors, as Nvidia’s investments further solidify the companies’ brands within the AI Revolution. As of Dec. 31, Nvidia had stakes totaling nearly $3.67 million in SoundHound, just over $147 million in Arm, and $75.9 million in Recursion.
So, what do you think about Nvidia’s latest investments in AI-related stocks? Are you bullish on these stocks as well? Share your thoughts in the comments below!
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