Nvidia (NVDA) continues to make waves in the AI industry, not only through its innovative products but also by investing in other high-potential AI companies. If you’re looking for stocks with explosive growth potential, here are six AI-driven companies Nvidia has stakes in, all of which have seen impressive stock price increases recently. These stocks could skyrocket, so it’s a great time to consider investing in them!
1. Applied Digital (APLD) – 29.16% Increase
As of December 17, 2024, Nvidia owns about a 3% stake in Applied Digital, a company that specializes in designing and constructing data centers aimed at AI and high-performance computing. Applied Digital is at the forefront of AI infrastructure, making it a prime candidate for growth.
Key Stats:
- 52-Week Range: $2.36–$11.25
- Market Cap: $1.88 billion
- Shares Outstanding: 211.25 million
- Public Float: 159.66 million
- Beta: 2.08
- Revenue per Employee: $1.27 million
- EPS: -$1.16
Applied Digital has seen a 29.16% increase in its stock price over the past month, demonstrating its significant potential in the rapidly growing AI sector. With Nvidia’s backing, this company could see even more substantial growth as the demand for AI data centers continues to rise.
2. Arm Holdings (ARM) – 12.70% Increase
Nvidia’s stake in Arm Holdings is another strategic move to solidify its dominance in the AI and semiconductor industries. Arm is crucial in helping semiconductor companies design advanced chips that power computing systems for AI applications.
Key Stats:
- Market Cap: $152.40 billion
- Enterprise Value: $150.30 billion
- Trailing P/E: 239.72
- Forward P/E: 73.53
- Price/Sales: 45.66
- Price/Cash Flow: 117.99
- 3-Month Average Trading Volume: 115.64 million
Arm’s stock has risen by 12.70% increase in the last month, reflecting the growing need for next-generation semiconductor technologies. With AI’s increasing reliance on efficient chips, Arm’s long-term prospects look promising.
3. Nano-X Imaging (NNOX) – 29.58% Increase
Nano-X Imaging focuses on improving medical imaging through AI software, a sector that has seen tremendous growth. Nvidia’s investment in Nano-X has paid off as the company’s stock price surged 29.58% Increase in the past month alone.
Key Stats:
- Market Cap: $430.56 million
- 52-Week Range: $5.26–$14.28
- Shares Outstanding: 57.78 million
- Public Float: 53.02 million
- Beta: 1.78
- Revenue per Employee: $65.12K
- EPS: -$0.86
- Short Interest: 6.77 million (as of November 29, 2024)
Nano-X’s AI-driven medical imaging solutions are changing the way healthcare diagnoses are made, and with the company’s stock price increasing rapidly, now is a prime time to invest before it experiences even more growth.
4. Recursion Pharmaceuticals (RXRX) – 21.97% Increase
Recursion Pharmaceuticals is transforming the drug discovery process using AI. This innovative approach has resulted in a 21.97% Increase in stock price over the past month, further highlighting the potential of AI in the healthcare sector.
Key Stats:
- Market Cap: $2.70 billion
- Shares Outstanding: 388.78 million
- Free Float: 369.04 million
- P/E (TTM): N/A
- Average Volume: 17.28 million
Recursion’s AI-driven platform holds the potential to accelerate drug development, making it a strong candidate for future growth as AI becomes more integrated into the healthcare and pharmaceutical industries.
5. Serve Robotics (SERV) – 86.55% Increase
Serve Robotics, a company developing autonomous delivery robots, has seen an extraordinary increase in its stock price recently. Nvidia holds an 8% stake in this innovative company, which is pioneering the future of autonomous delivery systems.
Key Stats:
- Market Cap: $579.42 million
- Shares Outstanding: 44.3 million
- Public Float: 27.5 million
- Beta: 1.93
- EPS: -$0.87
- Short Interest: 3.96 million (as of November 29, 2024)
- Return on Equity (ROE): -113.20%
- Return on Invested Capital (ROIC): -57.78%
With a sharp rise in demand for autonomous delivery solutions, Serve Robotics is positioned to benefit from ongoing technological advancements. Nvidia’s stake could yield impressive returns as the company gains market traction.
6. SoundHound AI (SOUN) – 284.17% Surge
SoundHound AI, a leader in conversational AI technologies, has seen an explosive 218.09% surge in stock price over the past month. Nvidia’s investment in this innovative company could result in even greater returns as AI-driven voice technologies continue to grow.
Key Stats:
- Market Cap: $7.28 billion
- Shares Outstanding: 337.01 million
- Public Float: 324.42 million
- Beta: 1.90
- EPS: -$0.36
SoundHound’s advanced voice recognition and AI capabilities put it at the forefront of conversational AI, an industry expected to see exponential growth in the coming years. This makes it one of the most exciting investments in Nvidia’s portfolio.
Why Nvidia’s Stake Matters
Nvidia’s strategic investments in these six companies underscore its commitment to leading the AI revolution. These companies are not only benefiting from Nvidia’s technological expertise but are also gaining access to resources that can help propel them to new heights.
As AI continues to disrupt various industries, Nvidia’s involvement in these companies positions it—and its investors—for continued success.
Conclusion: Invest Before They Soar
The rapid growth of these six AI stocks suggests they could be on the verge of major breakthroughs. Whether it’s through advancements in AI-powered healthcare, autonomous robotics, or next-gen semiconductors, these companies are positioned to capitalize on AI’s growth. With Nvidia’s stake in these companies, there’s strong potential for even more significant gains.
However, while investing in AI stocks with Nvidia’s backing offers great potential, there are several risks to consider, including volatility in the AI sector, dependence on Nvidia’s success, and the possibility of overvaluation.
Additionally, the uncertain regulatory environment, competition from larger players, and the lack of profitability and long-term sustainability in some companies could impact future growth.
