Nvidia reduces Arm Holdings stake, invests in WeRide

Nvidia's latest move highlights a strategic shift towards high-growth sectors like AI and autonomous vehicles, as the company refines its investment portfolio to focus on emerging, technology-driven industries

In a strategic reshuffling of its investment portfolio, Nvidia disclosed on Friday, February 14 that it had significantly reduced its stake in Arm Holdings by 44% and fully exited investments in Serve Robotics and SoundHound AI during the fourth quarter. This move signals Nvidia's evolving priorities, with the company continuing to concentrate its efforts on high-growth sectors like artificial intelligence (AI) and autonomous vehicles.

Notably, Nvidia increased its investment in China’s self-driving startup, WeRide Inc., acquiring 1.7 million shares. Following the announcement, WeRide's stock surged by 88%, underscoring Nvidia’s belief in the startup's potential to advance autonomous driving technology.

WeRide relies on Nvidia’s cutting-edge graphics processors and AI software for its self-driving vehicles, and with a current market valuation of $4.71 billion, the company appears poised for continued growth. Nvidia, an early investor, is well-positioned to benefit from the startup’s success.

Nvidia shifts investment focus

Nvidia's investment activities are closely watched by the market due to their potential to impact the stock prices of the companies involved. The company’s reported 1.2 million shares in Nebius Group, an AI cloud firm, helped boost Nebius' stock by 5% in response. The strategic moves reflect Nvidia's focus on expanding its footprint in AI-driven technologies while reducing exposure to certain other sectors.

Also Read: Arm Holdings plans to develop and launch AI chips in 2025

In terms of its stake in Arm Holdings, Nvidia reduced its holdings by 43.8%, leaving it with 1.1 million shares valued at around $181 million as of February 13. Arm provides the crucial chip architecture used by companies like Apple and Nvidia, making the decision to scale back its investment in the firm noteworthy.

Moreover, Nvidia’s decision to exit its positions in Serve Robotics and SoundHound AI led to significant drops in the stock prices of both companies—43% for Serve Robotics and 28% for SoundHound AI—further illustrating the impact of Nvidia's investment decisions.