Progress in the field of artificial intelligence (AI) has come quickly and furiously in recent years. Undoubtedly one of the greatest beneficiaries of this trend is Nvidia (Nasdaq: NVDA). The graphic processing units of the company (GPUs) have supported many of the progress in the field and have become the gold standard for AI. This has fueled unprecedented sales and profit growth for Nvidia, and every movement that the company makes is dissected by investors for insight into the future of the AI revolution.
At the end of last week, Nvidia submitted its 13F report to the Securities and Exchange Commission (SEC), in which the changes in its investment portfolio are described in the most recent quarter – in this case the quarter ended on 31 December.
NVIDIA has made some important changes, sold from the three AI shares, cutting one position and adding to two others. Because the company has the finger of AI finger, his decisions seem to bear a lot of weight among investors.
Let’s look at the shares in question and see what insight we can get from the movements of Nvidia.
In the third quarter, the record income of Soundhound AI of $ 25 million years after year grew by 89%, resulting in a loss per share of $ 0.06, an improvement compared to a loss of $ 0.09 in the quarter of the previous year. Although those results are impressive, Soundhound AI shares had been won around 836% in the year since Nvidia initially reported its interest.
The resulting increase in the valuation has been just as striking and the share closed the year that they sell 90 times, a stunning multiple for a company that is not yet profitable.
In the third quarter Serve Robotics generated a turnover of $ 0.22 million, which grew by 254% year after year, but departed from $ 0.51 million in Q2. Moreover, the losses of the company rose to $ 7.9 million. The interest of Nvidia led to a run on the shares, which won 592% between 30 June and 31 December. This resulted in a proportional increase in the appreciation, because the shares sold for 279 times, but profitability was nowhere in sight.
The chip maker also inserted his entire importance Nano-X imaging (Nasdaq: Nnox)A company that uses AI in combination with Real-WORLD medical imaging applications to offer advanced diagnostic possibilities and to improve patient care. This was by far the smallest interest of Nvidia and it sold all 60,000 shares worth around $ 429,000.
In the third quarter, Nano-X yielded a turnover of $ 3 million, which year after year the loss of Nano-X improved of $ 0.23 compared to a loss per share of $ 0.37 in the quarter of the previous year. In addition, the cash position of the company of $ 82 million to $ 57 million fell while it continues to burn its reserves.
Nano-X shares ended the year to sell 39 times sales, a steep price to pay for a company whose financial progress has been at its best.
Nvidia also reduced its interest Arm settlements (Nasdaq: poor)who had long been the largest company. The company offers the designs that are used in many of the world’s most advanced semiconductors, which generate royalties and license costs in the process. NVIDIA sold around 860,000 shares worth around $ 106 million. To be honest, it still has more than 1.1 million shares that were worth nearly $ 176 million (from Friday on the market), so it is still by far the utmost importance of Nvidia.
In the third quarter, ARM generated income that grew by 19% year on year to a record of $ 983 million, driven by record royalty income and strong licenses. This profit per share (EPS) of $ 0.24, which tripled. Helping the results was the company’s AI-centric version 9 cores, which offer greater computing power and generate the royalty percentage of its predecessor twice.
While arm is profitable and grows, the share still has an elevated appreciation, which sells income 209 times and 46 times (from this letter).
The first of the new companies of Nvidia is Nebius Group (Nasdaq: NBIS). The company, previously known as Yandex Group, offered internet and search services in Russia. The share trade was suspended in February 2022, shortly after the invasion of Ukraine. The company has divested control over its Russian companies and moved to the Netherlands.
Nebius has played and now offers cloud and AI services to a global customer base. The share began to act on October 20 and shortly thereafter Nvidia bought around 1.2 million shares worth around $ 33 million at the time of purchase.
It is also worth noting that Nvidia was part of a private placement of $ 700 million, of which Nebius said it will be used for extra capacity to support training and performing AI models. The company previously announced plans to invest more than $ 1 billion in AI-centric infrastructure in Europe.
Comparisons are relatively meaningless, given the situation. That said, the turnover of $ 43.3 million grew by 766%, and the adapted loss of $ 47 million improved by 45%, albeit of a small basis. At the time of the investment of Nvidia, the share sold for less than 1 turnover, which usually suggests undervalued shares.
The other new position of Nvidia is in Finished (Nasdaq: WRD). The Chinese robotaxi and Autonomous Driving Company became public at the end of October, shortly after announcing a strategic partnership with Uber To integrate its robotaxis into the Uber platform. Shortly after his IPO, Weride started to use his fleet Robotaxis on the Uber app in the United Arab Emirates.
In the third quarter, the turnover that fell by 6% generated to $ 10 million, while the loss per share of $ 2.10 31% improved. Due to the limited public business history, there is not much to continue and it would be difficult to allocate a rating. However, Nvidia must have had fun what it saw, because it bought more than 1.7 million shares in an interest worth nearly $ 25 million at the time of purchase.
The common thread behind all sales of Nvidia is relatively stretched ratings. It seems that the company simply responded to what it probably regarded as exalted multiples and surrenders to a little profitable. It is also possible that Nvidia had assessed and concluded the relative financial and operational performances of his investments and concluded that they simply did not take their potential.
In retrospect it is likely that Nvidia not Know something that Wall Street did not, but only responded to what it considered more compelling opportunities.
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Danny Vena has positions in Nvidia. The Motley Fool has positions and recommends Nebius Group, Nvidia,, Robotics and Uber Technologies. The Motley Fool has a disclosure policy.
Don’t Nvidia know something Wall Street? The chip maker has just sold 4 popular artificial intelligence (AI) shares and bought 2 others. was originally published by the Motley Fool
