NVIDIA Q4 holdings exposed! WeRide doubled during the session, "NVIDIA concept stocks" plummeted after being liquidated

On Friday, according to the 13F report submitted by NVIDIA to the U.S. Securities and Exchange Commission (SEC), as of the end of the fourth quarter, NVIDIA held 1.74 million shares in the Chinese autonomous driving startup WeRide, which drove the company's stock price to surge on Friday. Meanwhile, NVIDIA drastically cut its stake in Arm Holdings, owned by Masayoshi Son, by about 44% in a single quarter and exited its holdings in Serve Robotics and SoundHound AI in the fourth quarter.

WeRide focuses on autonomous driving technology and is a leader in this field, having gone public in the U.S. in late October last year. WeRide utilizes NVIDIA's advanced GPUs and artificial intelligence software to power its vehicles and currently operates autonomous taxis in 30 cities across 9 countries.

NVIDIA is an early investor in WeRide. Starting from L4, WeRide's rise has been supported by a host of star investors: Qiming Venture Partners, XPeng founder He Xiaopeng, IDG, Mubadala, and Innovation Works. During this period, it has also received offers from industry giants such as the Renault-Nissan-Mitsubishi Alliance, NVIDIA, Bosch, GAC, Yutong, and Uber.

Driven by NVIDIA's holdings, WeRide's ADR surged on Friday, triggering a trading halt at the beginning of U.S. trading due to excessive volatility, with an increase of 135.35% before the halt. The stock's gains later narrowed, ultimately closing up 83%.

NVIDIA also disclosed that it holds 1.2 million shares in the AI cloud computing company Nebius Group. This led to an 8% increase in Nebius Group's stock price on Friday. Nebius Group focuses on providing cloud platforms for intensive AI workloads, and as AI applications continue to expand, the demand for efficient and scalable cloud platforms is growing.

Reductions and Exits

NVIDIA reduced its stake in Arm by 43.8% to 1.1 million shares. As of Thursday's close, the remaining market value of its Arm stock holdings was approximately $181 million.

Arm provides critical intellectual property to companies including Apple and NVIDIA, which manufacture their own chips by licensing these technologies. Last year, struggling chipmaker Intel sold all its holdings in Arm during a restructuring process.

According to a report by the Financial Times on Thursday, Arm plans to launch its first self-developed chip this year, expected to debut as early as summer. This shift may lead Arm to compete directly with its previous partners, such as NVIDIA and Qualcomm, and could even trigger a rebalancing of existing customer relationships.

NVIDIA completely exited its holdings in the well-known "NVIDIA concept stock" voice assistant manufacturer SoundHound AI, causing the company's stock price to plummet 28% on Friday.

Currently, most generative AI chat tools rely on user input text commands to function at their best, while SoundHound's conversational AI technology can understand and respond to voice commands, making it a leader in this field Wall Street analysts have differing opinions on the long-term potential of SoundHound AI. Wedbush's well-known analyst Daniel Ives believes that SoundHound AI remains a "long-term winner in the AI revolution," expecting revenue to reach $84 million in 2024. However, NVIDIA's exit has raised questions: Can SoundHound AI maintain growth without the support of large AI players like NVIDIA?

NVIDIA also liquidated its stake in Serve Robotics, a company known for its sidewalk delivery robots. As a result, the company's stock price plummeted 43% during intraday trading on Friday, closing down about 40%.

NVIDIA also sold off its stake in Israeli medical technology company Nano-X Imaging Ltd, leading to a significant drop of 10% in the company's stock price during intraday trading on Friday.

Analysis Commentary

Since the end of 2023, NVIDIA has gradually invested in AI-related stocks. Investors are closely monitoring NVIDIA's stock disclosures, as this information may impact the stock prices of the companies in which it invests, reduces, or liquidates, while also providing insights into NVIDIA's growth strategy. NVIDIA's investment in a company is seen as the highest form of trust in that company.

Shiraz Ahmed, senior portfolio manager at Raymond James and founder of Sartorial Wealth, stated: "While NVIDIA's reduction of its stake in Arm Holdings may raise some concerns, its holdings in Nebius and WeRide align with NVIDIA's long-term AI strategy."

NVIDIA's holdings in Nebius Group and WeRide indicate a realignment of its investment focus, which can be interpreted as a positive signal regarding the technology and market position of these companies. NVIDIA's shift in holdings suggests that it is attempting to diversify its AI product investment portfolio, potentially focusing more on AI infrastructure and cloud computing rather than voice recognition technology.