Nvidia shares moved higher in early Tuesday trading and look set to return to levels reached prior to the emergence of China-based DeepSeek in late January, as investors picked through details of the latest tweaks in its nascent tech portfolio.
Nvidia (NVDA) which holds the market’s dominant position in AI chipmaking making under CEO Jensen Huang, also runs a small portfolio of investments that, under Securities and Exchange Commission rules, require quarterly public updates normally reserved for hedge funds and large investment vehicles.
In the group’s latest 13-F filing, published on the SEC website Friday, Nvidia noted a big change in its stake in Arm Holdings, the U.K.-based chip designer it attempted to buy outright for $40 billion in 2020.
Nvidia owned around 1.1 million shares in the group at the end of last year, its 13-F filing indicated, a 44% reduction from its prior report at the end of the third quarter of last year. The current value of its holding was pegged at around $181 million.
Nvidia called off its attempted purchase of Arm three years ago, citing pressure from regulators on both sides of the Atlantic, as well as in China, over the impact of the deal on global competition.
“Arm has a bright future, and we’ll continue to support them as a proud licensee for decades to come,” Huang said at the time. “Arm is at the center of the important dynamics in computing. Though we won’t be one company, we will partner closely with Arm.”
The latest move, however, could reflect Arm’s reported interest in expanding its business, which at present centers around licensing intellectual property for chip designs, to a more proactive approach that could involve designing and selling its own line of processors.
Nvidia slashes Arm stake
Reuters reported last week that Arm is accelerating that effort, aiming to compete directly against some of its own licensing customers, which include Nvidia, Apple (AAPL) , and Qualcomm (QCOM) .
JPMorgan analyst Harland Sur, in a note published last week, said that the planned investment by Arm’s biggest shareholder, Japan-based SoftBank, in the U.S. AI venture Stargate could eventually lead it into direct competition with Nvidia.
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The analyst noted, however, that Broadcom (AVGO) is likely to be the biggest beneficiary, given its market leadership in custom AI chips, a lower-priced and highly efficient alternative to Nvidia’s powerhouse GPUs.
“With the stepped-up focus on compute efficiency (thanks to DeepSeek), we can see these AI ASIC programs being accelerated to further augment compute efficiency and drive a more aggressive cost/compute curve,” Harland wrote.
Nvidia also unveiled a new 1.7 million share stake in China-based WeRide, a client that uses the chipmaker’s software and lower-end GPUs to power its autonomous vehicles.
Nebius Group, an AI-focused tech group rebranded from Russia’s Yandex, was also listed as a new Nvidia investment with a 1.2 million share stake value at around $33 million.
Shares of the Amsterdam-based group trade on the Nasdaq under the ticker symbol NBIS.
Sound Cloud, Serve Robotics out
Interestingly, Nvidia also closed out prior holdings in SoundCloud (SOUN) , which it unveiled in its maiden 13-F filing last year, and Redwood, Calif.-based robot delivery group Serve Robotics.
Nvidia will post its fourth-quarter earnings after the close of trading on February 26, with analysts looking for overall revenues to rise around 66% to $24.5 billion and net income surging 62% to $20.85 billion.
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Nvidia shares were last marked 1.9% higher in premarket trading. Arm Holdings shares, which fell 5% on Friday, edged 0.86% higher to $160.91 each.
SoundCloud fell 2.4% to $10.70 each while Serve Robotics slumped 4.8% to $13.18 each. Nano-X Imaging was last seen 0.74% higher at $6.77 each.
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