Arm, SoundHound AI shares jump as Nvidia builds stake

Nano-X Imaging

15/02/2024 11:15

Feb 15 (Reuters) - Nvidia's  NVDA.O  bet on smaller AI
firms from healthcare companies Nano-X Imaging and Recursion to
chipmaker Arm Holdings boosted their shares in premarket trading
on Thursday.
    Nvidia, the biggest winner of the AI boom, revealed its new
stakes in the firms as of Dec. 31 in a 13-F filing with the U.S.
SEC late on Wednesday.
    Fellow chip designer Arm Holdings  ARM.O  drew the biggest
investment from Nvidia, worth $147.3 million. The British
company has said its processors complement Nvidia's chips for AI
work in data centers. 
    Arm shares gained 2.6% on Thursday after surging more than
60% in value since its strong quarterly forecast last week.  
    Shares of biotech company Recursion Pharmaceuticals
 RXRX.O , in which Nvidia invested nearly $76 million, gained
16.5%. About eight months ago, Nvidia said it would invest in
Recursion to speed up training of the biotech firm's AI models
for drug discovery.
    The Silicon Valley megacap firm also invested nearly $3.7
million in voice AI platform SoundHound AI  SOUN.O , sending its
shares 72% higher. 
    It bought shares of Israel-based medical device company
Nano-X Imaging  NNOX.O , which uses AI software to analyze
reports. Nano-X shares rose 42.5% higher.
    Autonomous driving technology TuSimple Holdings  TSPH.PK ,
which delisted from Nasdaq last week, also drew $3 million in
capital from the chipmaker.
    Shares of other small-cap chipmakers rose in tandem, with
C3.ai Inc  AI.N  adding 1.5% and BigBear.ai Holdings  BBAI.N 
gaining 8.9%.
    Nvidia overtook Alphabet  GOOGL.O  and Amazon.com  AMZN.O 
this week to become the third most valuable U.S. company.

 (Reporting by Medha Singh in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly
Twitter: @medhasinghs;))