Nvidia, the leading AI chip manufacturer, has significantly adjusted its investment portfolio, reducing its stake in British chip firm Arm Holdings by approximately 44% and increasing its position in China's self-driving startup WeRide Inc. According to a regulatory filing released on Friday, the company also exited investments in Serve Robotics and SoundHound AI during the fourth quarter.
Nvidia Strengthens Ties with WeRide
One of the most notable disclosures in the filing was Nvidia’s 1.7 million-share position in WeRide Inc, which led to a 94% surge in the autonomous vehicle company’s stock. WeRide, which utilizes Nvidia’s high-performance graphics processors and AI technology for its self-driving systems, was last valued at $4.71 billion. Nvidia’s early involvement in WeRide underscores its commitment to fostering AI-driven innovations in the mobility sector.
Dennis Dick, a trader at Triple D Trading, commented on the investment, stating, "There is no greater vote of confidence than Nvidia taking a stake in your company." The move signals Nvidia's continued expansion into the autonomous vehicle industry.
Trimming Arm Holdings Stake
Despite its growing influence in AI and autonomous systems, Nvidia made the strategic decision to cut its stake in Arm Holdings by 43.8%, leaving it with 1.1 million shares valued at approximately $181 million. The decision raised some eyebrows, particularly as Arm supplies critical intellectual property that firms like Apple and Nvidia itself license to design their chips.
Shiraz Ahmed, senior portfolio manager at Sartorial Wealth, remarked, "While trimming its Arm Holdings position may raise some eyebrows, the move into Nebius and WeRide aligns with its long-term AI strategy."
Exiting Serve Robotics and Nano-X Imaging
As part of its restructuring, Nvidia fully divested from Serve Robotics, a company specializing in sidewalk delivery robots, and Israel-based medical technology firm Nano-X Imaging Ltd. Following the announcement, Serve Robotics' shares fell by 42%, while Nano-X Imaging saw a 13% decline.
Additionally, Nvidia disclosed a 1.2 million-share position in AI cloud firm Nebius Group, which saw its stock rise by 8% after the news.
Strategic Shift Towards AI and Automation
Nvidia's latest investment maneuvers reinforce its strategic emphasis on AI, cloud computing, and autonomous systems. While the reduction in its Arm Holdings stake may appear surprising, its continued push into AI-powered ventures like WeRide and Nebius suggests a broader vision focused on next-generation technology.
With AI transforming industries at an unprecedented rate, Nvidia’s latest moves indicate its dedication to staying at the forefront of innovation, ensuring its influence extends far beyond the semiconductor industry.
