Investors Are Piling Into Nvidia Stock. But Nvidia Is Investing in 5 Other AI Stocks.

Over any meaningful time span, Nvidia (NASDAQ: NVDA) has been a blockbuster investment. It’s up almost 1,800% over the last five years, and it has more than tripled in the past year alone, fueled by investors’ excitement for artificial intelligence (AI).

There’s good reason to believe Nvidia is a top AI stock. Management attributes its surging revenue to AI-related products and services. To illustrate how strong demand is, the company expects to report revenue of $20 billion in its fiscal 2024 fourth quarter. That would be a 231% year-over-year increase — simply astounding for a company of this size.

AI is the top investment trend right now, and Nvidia stock is one of the most popular ways to ride the trend higher. However, for its part, the company is buying shares of five other AI companies.

This interesting development made the news on Feb. 14 with Nvidia’s first 13F filing with the Securities and Exchange Commission. This form is for institutional investment managers to report their stock holdings.

According to its 13F, Nvidia has a stock portfolio worth $230 million, and these are the AI stocks it’s been buying.

A glimpse inside Nvidia’s stock portfolio

Nvidia’s 13F shows it owns only five stocks, but all five have a connection to AI in some capacity. Here’s a quick overview of each company, from the largest investment down to the smallest.

• Arm Holdings (NASDAQ: ARM) licenses its AI semiconductor chip designs to other companies, and this business is in high demand right now. Nvidia tried to acquire Arm back in 2020 but finally called it off in 2022 after pushback from regulators. Now, it will look to benefit as an investor. This is Nvidia’s largest stock position, valued at $147 million as of the SEC filing.

• Next in Nvidia’s portfolio is Recursion Pharmaceuticals (NASDAQ: RXRX). This early-stage biotechnology company is using AI models to process genetic data and find new drugs. It’s an idea that could be game-changing for the medical field, which is why the stock…