With the exception of Arm, which topped $130 billion in market cap recently, shares of the Nvidia-backed companies soared on Thursday following the 13F filing, a form that must be submitted by institutional investment managers overseeing at least $100 million in assets.
But none of these investments would be surprising to anyone who took the time to sift through old news reports and filings. The AI mania is firmly in an irrational exuberance phase, and investors are pouncing on anything and everything in the space.
No stock is hotter than Nvidia, which passed Amazon in market value on Tuesday and then Alphabet on Wednesday to become the third most valuable company in the U.S., behind only Apple and Microsoft. Nvidia shares are up more than 200% over the past 12 months due to seemingly limitless demand for its AI chips, which underpin powerful AI models from Google, Amazon, OpenAI and others.
SoundHound, which uses AI to process speech and voice recognition, jumped 68% on Thursday, after Nvidia disclosed a stake that amounted to $3.7 million at the time of the filing. Nvidia invested in SoundHound back in 2017 as part of a $75 million venture round.
SoundHound went public through a special purpose acquisition company in 2022, and Nvidia was named as a strategic investor in its presentation.
Nano-X uses AI in medical imaging. Nvidia’s disclosure of a $380,000 investment in the company sent the stock up 59% on Thursday. Nvidia’s involvement dates back years to a venture investment in Zebra Medical, an Israeli medical imaging startup. Nano-X acquired Zebra in 2021.
TuSimple, an autonomous trucking company, rocketed 40% on Thursday after the disclosure of Nvidia’s $3 million stake. The share rally comes a month after the company announced plans to delist from the Nasdaq due to a “significant shift in capital markets” since its 2021 IPO. TuSimple debuted at $40 a share and now trades for roughly 50 cents.
“Accordingly, the Special Committee determined that the benefits of remaining a publicly traded company no longer justify the costs,” TuSimple said in a release on Jan. 17. “The Company is undergoing a transformation that the Company believes it can better navigate as a private company than as a publicly traded one.”
Nvidia acquired its stake in biotech company Recursion more recently. Like TuSimple, Recursion went public in 2021, but Nvidia bought in two years later through what’s called a private investment in public equity (PIPE). Nvidia bought $50 million worth of shares in 2023 and now has an investment worth $76 million, according to its filing.
Recursion shares spiked 15% on Thursday.
Nvidia’s own financials will be on full display next week, when the company reports quarterly earnings. Analysts are expecting year-over-year revenue growth above 200% to more than $20 billion.
The company’s more recent investments are likely to be much more significant than its earlier bets, disclosed late Wednesday, because they’re at the heart of the AI boom. In recent years, Nvidia has backed hot AI startups including Cohere, Hugging Face, CoreWeave and Perplexity.
“AI is transforming the way consumers access information,” said Jonathan Cohen, Nvidia’s vice president of applied research, in Perplexity’s announcement of a $73.6 million funding round last month “Perplexity’s world-class team is building a trusted AI-powered search platform that will help push this transformation forward.”
Altimeter Capital CEO Brad Gerstner said Thursday that he’s moving out of the “bomb shelter” with Nvidia and into a position of safety, expecting that the chipmaker is positioned to withstand President Donald Trump’s widespread tariffs.
“The growth and the demand for GPUs is off the charts,” he told CNBC’s “Fast Money Halftime Report,” referring to Nvidia’s graphics processing units that are powering the artificial intelligence boom. He said investors just need to listen to commentary from OpenAI, Google and Elon Musk.
President Trump announced an expansive and aggressive “reciprocal tariff” policy in a ceremony at the White House on Wednesday. The plan established a 10% baseline tariff, though many countries like China, Vietnam and Taiwan are subject to steeper rates. The announcement sent stocks tumbling on Thursday, with the tech-heavy Nasdaq down more than 5%, headed for its worst day since 2022.
The big reason Nvidia may be better positioned to withstand Trump’s tariff hikes is because semiconductors are on the list of exceptions, which Gerstner called a “wise exception” due to the importance of AI.
Nvidia’s business has exploded since the release of OpenAI’s ChatGPT in 2022, and annual revenue has more than doubled in each of the past two fiscal years. After a massive rally, Nvidia’s stock price has dropped by more than 20% this year and was down almost 7% on Thursday.
Gerstner is concerned about the potential of a recession due to the tariffs, but is relatively bullish on Nvidia, and said the “negative impact from tariffs will be much less than in other areas.”
He said it’s key for the U.S. to stay competitive in AI. And while the company’s chips are designed domestically, they’re manufactured in Taiwan “because they can’t be fabricated in the U.S.” Higher tariffs would punish companies like Meta and Microsoft, he said.
“We’re in a global race in AI,” Gerstner said. “We can’t hamper our ability to win that race.”
YouTube on Thursday announced new video creation tools for Shorts, its short-form video feed that competes against TikTok.
The features come at a time when TikTok, which is owned by Chinese company ByteDance, is at risk of an effective ban in the U.S. if it’s not sold to an American owner by April 5.
Among the new tools is an updated video editor that allows creators to make precise adjustments and edits, a feature that automatically syncs video cuts to the beat of a song and AI stickers.
The creator tools will become available later this spring, said YouTube, which is owned by Google.
Along with the new features, YouTube last week said it was changing the way view counts are tabulated on Shorts. Under the new guidelines, Shorts views will count the number of times the video is played or replayed with no minimum watch time requirement.
Previously, views were only counted if a video was played for a certain number of seconds. This new tabulation method is similar to how views are counted on TikTok and Meta’s Reels, and will likely inflate view counts.
“We got this feedback from creators that this is what they wanted. It’s a way for them to better understand when their Shorts have been seen,” YouTube Chief Product Officer Johanna Voolich said in a YouTube video. “It’s useful for creators who post across multiple platforms.”
CEO of Meta and Facebook Mark Zuckerberg, Lauren Sanchez, Amazon founder Jeff Bezos, Google CEO Sundar Pichai, and Tesla and SpaceX CEO Elon Musk attend the inauguration ceremony before Donald Trump is sworn in as the 47th U.S. president in the U.S. Capitol Rotunda in Washington, Jan. 20, 2025.
Saul Loeb | Via Reuters
Technology stocks plummeted Thursday after President Donald Trump’s new tariff policies sparked widespread market panic.
Apple led the declines among the so-called “Magnificent Seven” group, dropping nearly 9%. The iPhone maker makes its devices in China and other Asian countries. The stock is on pace for its steepest drop since 2020.
Other megacaps also felt the pressure. Meta Platforms and Amazon fell more than 7% each, while Nvidia and Tesla slumped more than 5%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Microsoft and Alphabet both fell about 2%.
The drop in technology stocks came amid a broader market selloff spurred by fears of a global trade war after Trump unveiled a blanket 10% tariff on all imported goods and a range of higher duties targeting specific countries after the bell Wednesday. He said the new tariffs would be a “declaration of economic independence” for the U.S.
Companies and countries worldwide have already begun responding to the wide-sweeping policy, which included a 34% tariff on China stacked on a previous 20% tax, a 46% duty on Vietnam and a 20% levy on imports from the European Union.
China’s Ministry of Commerce urged the U.S. to “immediately cancel” the unilateral tariff measures and said it would take “resolute counter-measures.”
The tariffs come on the heels of a rough quarter for the tech-heavy Nasdaq and the worst period for the index since 2022. Stocks across the board have come under pressure over concerns of a weakening U.S. economy. The Nasdaq Composite dropped nearly 5% on Thursday, bringing its year-to-date loss to 13%.
Trump applauded some megacap technology companies for investing money into the U.S. during his speech, calling attention to Apple’s plan to spend $500 billion over the next four years.