The Zhitong Finance App learned that the “Nvidia Stock Trading Section”, which has recently become popular in US stocks, has attracted a large influx of capital from around the world. One of these sectors$SoundHound AI (SOUN.US)$It surged nearly 79% last week.$Arm Holdings (ARM.US)$The stock price doubled in three days. Well-known Wall Street investment agency Wedbush Securities recently stated that AI chip giant$NVIDIA (NVDA.US)$It was announced that it has made strategic investments in several AI-related technology companies, including SoundHound AI, an artificial intelligence recognition company focusing on the voice sector, which has recently surged in stock prices. These investments may only be the beginning of the trillion-dollar chip giant's AI investment ambition.

Wedbush analysts, led by Dan Ives (Dan Ives), wrote in an investor report: “We think these investments in AI-related technology companies are a positive indicator for Nvidia, as these investments have now further strengthened Nvidia's brand influence in the AI revolution. Artificial intelligence godfather Wong In-hoon and Nvidia now support Arm, SoundHound AI and$Recursion Pharmaceuticals (RXRX.US)$Waiting for the company, we believe this may be the beginning of a broader investment in technology companies, which is an obvious success.”

In terms of ratings and target prices, Wedbush rated SoundHound AI, one of the “Nvidia stock trading segments” that have recently been popular in US stocks, as “outperforming the market,” while the target stock price for a 12-month period was set at $5. SoundHound AI surged nearly 70% last week, and its stock price was $3.820 as of last Friday's close.

According to the latest 13F disclosure report for the fourth quarter of 2023, Nvidia also disclosed information on chip design leader Arm and autonomous truck manufacturer$TuSimple (TSP.US)$, Recursion Pharmaceuticals, a biotech company focusing on AI pharmaceuticals, and medical imaging technology developers$Nano X Imaging (NNOX.US)$investment.

Last week, these “stocks speculated by Nvidia” collectively skyrocketed, highlighting the popularity of these stocks by global capital and the “brand effect” brought about by Nvidia, a trillion dollar chip giant.

According to information, Nvidia first invested in SoundHound AI in 2017. At that time, Nvidia participated in a round of financing of 75 million dollars to help SoundHound AI develop in the international market. Since then, the chip giant has bought around 1.73 million shares worth around $3.67 million, but this is clearly insignificant compared to a company worth around $1.8 trillion.

In addition to these US stock listed companies, Nvidia has also invested in many unlisted AI startups, such as chatbot manufacturer Kore.ai, an Israeli artificial intelligence (AI) startup AI21 Labs, EnFabrica, a startup dedicated to artificial intelligence data center network chips, and CoreWeave, a computing power leasing leader favored by Nvidia.

SoundHound AI - a leader in AI audio recognition and AI voice interaction

With the launch of ChatGPT, artificial intelligence technology plays an increasingly important role in every aspect of human society, and Nvidia strives to spend capital to help humans meet the full advent of the AI era, especially in the field of AI technology where global consumers interact on a daily basis.

According to public information, SoundHound AI's business includes cooperation with automobile manufacturers and TV vendors, and involves software connected to Internet devices, including cooperation with European automobile manufacturing giant Stellantis (STLA.US) and Hyundai (Hyundai) manufacturing plants in the US. The more important business is that SoundHound AI provides voice customer solutions based on artificial intelligence technology. Retailers such as Jersey Mike's and Krispy Kreme have integrated these AI software products into their stores, such as providing voice ordering systems for American restaurant chain giant Krispy Kreme.

One of SoundHound AI's best-known products is its music recognition application SoundHound, which can quickly identify and provide relevant music information by humming a user's song or entering some of the song's lyrics. In addition, as described above, SoundHound AI also focuses on developing AI-based speech recognition technology to provide AI technical support for smart speakers, voice assistants, and other voice-interactive Internet devices in cars.

Wedbush analysts led by Dan Ives (Dan Ives) said in the report that Nvidia now firmly supports the Santa Clara, California-based tech company. As more AI use cases are realized, investors are increasingly convinced that SoundHound AI will be in a “strong position” in the AI chatbot market this year and beyond.

ARM — may be one of the biggest beneficiaries of the AI era

According to data disclosed by 13F, the largest share of Nvidia's US stock holdings is occupied by Arm, a leader in the chip design field, which can be called the most popular stock in the “Nvidia stock trading sector.” In the US stock market last week, Arm's stock price doubled in three days. Apart from strong performance, this stock price performance is also inseparable from Arm's holding ratio disclosed by Nvidia 13F.

Arm can be described as one of the most important chip companies. It sells licenses for the core set of instructions for almost all smartphone mobile chips in the world. The ARM architecture is mainly used in the smartphone field, mainly because of its low power consumption, high performance, and highly customizable characteristics, making it ideal for the needs of mobile devices.

However, now ARM architectures are also appearing more and more frequently in the field of computers and AI server chips, for example$Amazon (AMZN.US)$The data center Graviton server processor uses an ARM architecture.$Microsoft (MSFT.US)$The newly launched self-developed customized AI chip Azure Cobalt 100 is a server CPU also built on the ARM architecture and is specifically designed to run cloud computing workloads on Microsoft Azure cloud servers.

Arm CEO Rene Haas said that the huge opportunities presented by artificial intelligence are still in their early stages. Haas stated in the results report: “Artificial intelligence will not shape or shape a hype cycle in any way. We believe artificial intelligence is the most profound opportunity of our lives, and we are just getting started in this field.”

Among Nvidia's US stock holdings up to the fourth quarter, ARM ranked first, holding 1.961,000 shares with a market value of about US$147 million, accounting for 63.95% of the investment portfolio. It can be said that Nvidia and Arm have an indissoluble bond. As early as 2020, Nvidia tried to buy Arm for 40 billion US dollars. The deal ultimately failed under regulatory pressure, and Nvidia terminated the acquisition of Arm in February 2022.

Editor/Somer