The semiconductor giant Nvidia (Nasdaq: NVDA) is completely the company, developing high -end graphic processing units (GPU) which help artificial intelligence applications (AI). Many investors consider Nvidia as the choices and traffic jams play for AI, which would be quite remarkable given the amount of AI which should change almost all aspects of our daily life.
With a market capitalization of nearly 3 dollars, Nvidia has become so important that it had excess resources available to invest in other AI companies that it finds convincing or can associate or work with it. At the end of its fourth quarter of the 2025 financial year (completed on January 26), Nvidia said that its shareholder was totaling nearly $ 305 million, and 81% of the portfolio at the time was invested in these three revolutionary AI shares.
Nvidia’s position in Arm holdings (Nasdaq: Arm) rose to nearly $ 136 million at the end of the fourth quarter, or approximately 45% of the NVIDIA shares portfolio. The position was even larger, given that Nvidia sold more than 850,000 shares during the quarter. ARM is a British semiconductor company that holds intellectual property rights on technology that feeds many modern chips found in a range of technological devices manufactured by some of the largest companies in the world.
In 2020, Nvidia actually tried to buy Arm for $ 40 billion, but regulatory roadblocks crushed the agreement. The failed agreement turned out to be a disguised blessing for Arm, because Nvidia has invested in the company’s initial public offer and ARM currently has a market capitalization of nearly $ 130 billion. The two companies have long collaborated because Arm provides key technology that Nvidia has used in most of its chips, including its new generation Blackwell GPU.
Since the initial public offer of Arm (IPO) in September 2023, the actions of the company have more than doubled. During the 2024 calendar year, income increased by 27% compared to the calendar year 2023, while the profit diluted per share went from $ 0.07 to $ 0.76. The stock was also maintained compared to others in the AI sector and is only decreasing 4% this year. However, it is negotiated at around 76 times the profits and investors have left its last quarter with concerns concerning the future demand for AI. This makes it a little risky and its valuation somewhat expensive, but if the request for AI remains or accelerates, the arm will do well.
Nvidia’s position in the digital infrastructure company Digital applied (Nasdaq: APLD) amounted to around $ 59 million at the end of the fourth quarter, or about 19.4% of the portfolio. Applied digital construction data centers specifically for AI. These data centers are located near renewable energy sources, have liquid cooling capacities and are evolving to meet future requests.
Applied Digital deploys NVIDIA GPUs to make IT applications high performance possible. In 2023 Applied reached the status of “elite partner” in the NVIDIA partner network. Elite Partners receives priority access to Nvidia products. It seems that it is in the best interest of Nvidia to apply well, so by funding the company, it also helps its own prospects.
Applied is still losing money right now. For the six months ending on November 30, Applied said a loss of $ 0.81 per share, against a loss of $ 0.21 per share during the same period a year earlier. The stock has been volatile in recent months, but analysts remain optimistic. At the end of January, Compass Point analyst Joe Flynn launched coverage of applied digital actions, awarding a purchase rating and a price target of $ 10, which implies around 33% of current levels (March 25). Flynn thinks that there is a good chance that the digital application will soon sign a data center agreement with a large cloud supplier as one of the “Magnifice SEVEN”.
Pharmaceutical Recur (Nasdaq: RXRX) is not your typical AI infrastructure game, but rather a biotechnology company taking advantage of AI to discover drugs in an innovative way. At the end of last year, Nvidia’s position amounted to $ 52.1 million, or 17% of the portfolio. Révorsion uses algorithms and automatic learning data to try to dissect biological relations that lead to a more efficient discovery of drugs.
According to the company’s annual report, RECORursion has “one of the most sophisticated automated wet networks in the world where robots and sensors help us lead and digitize millions of real experiences each week, covering cellular systems, chemical systems, tissue systems and animal models.” Rectorsion also said that he had access to the fastest supercomputer from any biotechnology company.
Similar to the above companies, NVIDIA has also teamed up with RECORD. In July 2023, RECORursion announced an investment of $ 50 million in NVIDIA thanks to a private investment in public equity (PIP). NVIDIA also provided the company with access to its technology. At the time of the pipe, the co-founder of Recur, Chris Gibson, said: “With our powerful set of data and our accelerated calculation capacities of Nvidia, we intend to create revolutionary foundation models in biology and chemistry on a scale unlike all that has ever been published in biological space.”
Like many young biotechnology companies, recursion is still losing money, but it has a pipeline of 10 clinical and preclinical programs. Biotechnology actions are ultimate risk games because their success involves approving drugs and on the finish line before missing money, which actually makes them as start-ups. Recursion certainly seems to have an innovative technology and good partnerships in place, but I would not recommend taking anything more than a smaller and more speculative position at the moment.
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Bram Berkowitz Has no position in the actions mentioned. The Motley Fool has positions and recommends Nvidia. The Word’s madman has a Disclosure policy.
Nvidia has 81% of its stock portfolio of $ 304 million invested in 3 revolutionary AI shares was initially published by the Motley Fool
