Nvidia’s (NVDA) Secret Investment Portfolio Is 100% Invested in 5 AI Stocks

Because Nvidia (NASDAQ:NVDA) has become the face of artificial intelligence, investors tend to view it as a proxy for the technology. If you want to buy into AI’s future growth, NVDA stock is seen as giving your portfolio direct exposure to it.

What is less well known is that Nvidia is also looking to the future, and scanning the horizon beyond its own AI accelerators. It seeks out where the technology is going and is investing its own money in it.

Nvidia has an investment portfolio worth approximately $305 million and it directs the money into stocks that it sees as future winners. Artificial intelligence has always been a cornerstone of its investments, but today all five companies it owns in its secret stock portfolio are AI stocks.

Arm Holdings (ARM)

Nvidia owns 1.1 million shares of Arm Holdings (NASDAQ:ARM) that, at the end of the fourth quarter, was valued at $135.9 million, the largest position in the portfolio. It was an early investor in Arm’s 2023 IPO.

The UK-based chip designer, though, powers 99% of smartphones with its energy-efficient architecture, licensing its valuable IP to other chipmakers that produce their own chips.

Arm’s designs underpin AI workloads in mobile devices, data centers, and IoT, with its v9 architecture boosting machine learning by 30%. As AI demand is projected at $1 trillion by 2030, Arm’s licensing model provides a rich source of funding, generating $3.7 billion in trailing revenue, a 14% increase from the prior year. 

Applied Digital (APLD)

The second-largest position in Nvidia’s portfolio is Applied Digital (NASDAQ:APLD), an AI-power data center company that relies heavily upon the chipmaker’s graphics processing units (GPUs) for its operations. Nvidia owns 7.7 million shares worth $59 million at the end of Q4.

Hyperscaler demand for data centers has been white hot, as shown by Applied Digital’s fiscal second-quarter results. Revenue surged 54% in the period to $64 million and earlier this year it inked a $5 billion financing deal with Macquarie Asset Management to build out more data centers. APLD is poised for expansion and targeting 2 gigawatts of capacity by 2027. 

Recursion Pharmaceuticals (RXRX)

While a pharmaceutical stock might not seem like an AI stock, Recursion Pharmaceutical (NASDAQ:RXRX) is using the technology for drug discovery. AI has the potential to make the long, arduous drug discovery process quicker and less expensive. 

Nvidia invested $50 million in the biotech two years ago through a private investment in public equity (PIPE) financing deal. It also allows Recursion access to its AI tools to assist in drug discovery. The chipmaker owns 7.7 million shares that were valued at $52.1 million.

Nebius Group (NBIS)

Nebius Group (NASDAQ:NBIS) is another data center stock that is not quite so well known as its former parent Yandex, the Russian search engine. It is targeting the GPU-as-a-service and AI cloud market that it forecasts will grow to over $260 billion by 2030. This boom stems from industries like healthcare, automotive, and tech leaning on AI, creating a rich environment for Nebius’s products.

Nvidia participated in an additional $700 million private placement in December for Nebius, along with Accel and Orbis Investments to build clusters of GPUs, cloud platforms, and other tools for AI developers faster.

WeRide (WRD)

The last stock in Nvidia’s secret investment portfolio is Chinese autonomous vehicle (AV) leader WeRide (NASDAQ:WRD). It owns 1.7 million shares worth $24.7 million. 

The chipmaker had been hinting for some time that it was very interested in AVs and had pointed out manufacturers were incorporating its family of embedded AI computers called Nvidia Orin that includes the DRIVE Orin system-on-a-chip (SoC) and the Jetson Orin modules. Nvidia estimates the AV market represents a long-term $300 billion opportunity.

WeRide is the leading AI-powered AV operator in China, with a presence in 30 cities across nine countries, and is looking to expand further into Japan, Europe, and the Middle East.

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