Nvidia (NASDAQ: NVDA) has been a blockbuster investment. It’s up almost 1,800% over the last five years, and it has more than tripled in the past year alone, driven by investors’ excitement, and general advancements, in artificial intelligence (AI).

While Nvidia itself doesn’t directly invest in individual stocks in the traditional sense, it does hold stakes in several companies that are heavily involved in artificial intelligence (AI) and related technologies through strategic acquisitions or investments. Here’s a breakdown of the five AI-related stocks currently held by Nvidia, as reported in their latest 13F filing:

1. Arm Holdings (ARM): This is Nvidia’s largest holding, with a stake valued at around $147 million. Arm is a leading designer of semiconductor chip architectures, particularly for mobile devices, and its technology is used in many of Nvidia’s own products. While the acquisition of Arm by Nvidia is still pending regulatory approval, it signifies Nvidia’s strategic interest in expanding its reach into the mobile and internet of things (IoT) markets, which are heavily reliant on AI advancements.

2. Recursion Pharmaceuticals (RXRX): This company uses AI and machine learning to accelerate drug discovery and development. Nvidia’s stake in RXRX is valued at around $95 million. The investment aligns with Nvidia’s growing interest in healthcare and life sciences, where AI is playing an increasingly important role in tasks like drug discovery, medical imaging analysis, and personalized medicine.

3. SoundHound AI (SOUN): This company develops voice recognition and natural language processing (NLP) technologies, which are crucial components of many AI applications. Nvidia’s stake in SOUN is valued at around $6.5 million. The investment suggests that Nvidia sees potential in integrating voice-based AI into its products and services, such as for gaming, virtual assistants, and autonomous vehicles.

4. Nano-X Imaging (NNOX): This company develops medical imaging systems that use AI for image reconstruction and analysis. Nvidia’s stake in NNOX is valued at around $4 million. The investment aligns with Nvidia’s interest in healthcare and its potential applications of AI in medical imaging, particularly for early disease detection and personalized treatment plans.

5. Tusimple Holdings (TSP): This company develops self-driving truck technology, which heavily relies on AI for perception, planning, and control. Nvidia’s stake in TSP is valued at around $1 million. The investment reflects Nvidia’s interest in the autonomous vehicle market and its belief that AI will play a key role in its future development.

It’s important to remember that these are just a snapshot of Nvidia’s current holdings, and their investment strategy can evolve over time. While these companies offer insights into Nvidia’s potential areas of future growth and interest in AI, it’s crucial to conduct your own research and due diligence before making any investment decisions. For example, both Nano-X Imaging (NNOX) and Recursion Pharmaceuticals (RXRX) fall into the “high-risk, high-reward” category for distinct reasons.

Nano-X Imaging (NNOX):

• High-risk: NNOX is developing a novel medical imaging system called the “Nanox-ARC,” which uses gallium nitride (GaN) semiconductors instead of traditional X-ray tubes. While GaN offers potential advantages like lower radiation and higher resolution, the technology is still unproven in large-scale clinical settings. Additionally, the company has limited revenue and faces significant competition from established players in the medical imaging market.
• High-reward: If successful, NNOX’s technology could revolutionize medical imaging, offering safer and more efficient diagnostics. The potential market for this technology is vast, encompassing hospitals, clinics, and research institutions. Additionally, NNOX’s partnership with NVIDIA suggests access to cutting-edge AI capabilities for image reconstruction and analysis, potentially further enhancing its offering.

Recursion Pharmaceuticals (RXRX):

• High-risk: RXRX utilizes AI and machine learning to accelerate drug discovery, a notoriously slow and expensive process. Their approach is still in its early stages, and there’s no guarantee it will lead to successful drug development. Additionally, the company has yet to generate any revenue and faces competition from established pharmaceutical companies and other AI-driven drug discovery startups.
• High-reward: If successful, RXRX’s technology could significantly reduce the time and cost of drug development, leading to faster availability of new treatments for various diseases. The potential market for such a breakthrough is massive, encompassing the entire pharmaceutical industry. Additionally, RXRX’s collaboration with NVIDIA provides access to powerful computing resources crucial for their AI-driven approach.

Their success hinges on overcoming technical hurdles, navigating regulatory landscapes, and establishing themselves in competitive markets. As the saying goes “Fortune favors the bold”, but investors should carefully consider their risk tolerance and conduct thorough research before making any investment decisions.