Does Nvidia Know Something Wall Street Doesn’t? The Chipmaker Just Sold 4 Popular Artificial Intelligence (AI) Stocks and Bought 2 Others.

From Nasdaq: 2025-02-19 06:00:00

Advances in AI have propelled Nvidia (NASDAQ: NVDA) to unprecedented sales and profit growth, making it a key player in the AI revolution. Nvidia’s recent 13F filing revealed significant changes to its investment portfolio, including selling out of three AI stocks, trimming one position, and adding stakes in two others, reflecting its influence in the industry.

Nvidia sold out of SoundHound AI (NASDAQ: SOUN), a leading voice-enabled AI solutions provider, citing its impressive revenue growth and high valuation. The company also divested its stake in Serve Robotics (NASDAQ: SERV), an autonomous delivery company, and Nano-X Imaging (NASDAQ: NNOX), a medical imaging AI firm, due to their limited profitability and high valuations.

In a surprising move, Nvidia reduced its stake in Arm Holdings (NASDAQ: ARM), despite its strong financial performance and growth in revenue and earnings. The company’s decision to trim its position suggests a strategic reallocation of assets to more promising opportunities.

Nvidia’s new investments in Nebius Group (NASDAQ: NBIS) and WeRide (NASDAQ: WRD) highlight its focus on emerging cloud and AI services and autonomous driving technologies. These additions reflect Nvidia’s strategic shift towards innovative sectors with growth potential, signaling its commitment to staying at the forefront of technological advancements.

Nvidia’s recent portfolio adjustments indicate a strategic realignment towards more promising opportunities in the AI and technology sectors. By divesting from overvalued stocks and investing in companies with growth potential, Nvidia is positioning itself for continued success in the fast-evolving tech landscape.

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