Jensen Huang's Valentine's Day bomb: Investors in shock as Nvidia buys and dumps AI stocks in stunning power play

On February 14, the day the world celebrated Valentine's Day, Nvidia CEO Jensen Huang dropped a bombshell that shook investors, according to a report.

The tech giant, whose market capitalization stands at $3.40 trillion, made huge shifts in its AI portfolio—unloading holdings in several firms while also investing in others, as per The Street.

Stocks drop: Nvidia sells big stakes

The effect was instant and dramatic after Nvidia's 13F filing revealed its holdings and sales with the Securities and Exchange Commission on 14 February.


According to The Street, Nvidia had dumped its entire stakes in SoundHound AI, Serve Robotics, and Nano-X Imaging. The stocks of these companies crashed: SoundHound AI fell by 28%, Serve Robotics crashed by 40%, and Nano-X Imaging went down by 11%, as per the report.

In Nvidia's quarterly results announced on February 6, it revealed that it reduced its stake in British chip firm Arm Holdings by 44%, reported The Street. This led its shares to fall 3.2%.

Big winners: Nvidia's investments propel stocks upward

While a few other companies saw their stocks rise after the chipmaker disclosed its holdings as of the end of 2024, reported The Street.

This includes Applied Digital, which focuses on AI data centres, which saw a 15.2% rise in stock. Recursion Pharmaceuticals, using AI to discover drugs, jumped 24%. Another big winner was WeRide, a Chinese autonomous vehicle company, whose shares soared 84% after Nvidia disclosed its stake,as per the report.

Nebius Group, a provider of AI data centre infrastructure, also saw a 6.7% boost. With a projected $1 billion in revenue by 2025, Nebius is positioned for rapid growth, helped by a $700 million capital raise from Nvidia, reported The Street.

Nvidia’s expanding AI footprint

Nvidia is also backing Mistral AI, a French startup planning known for its AI assistant "Le Chat" is planning to launch Europe’s largest supercomputer.

FAQs

What did Nvidia’s February 14 filing reveal about its investments?
Nvidia's February 14 filing revealed significant shifts in its AI portfolio, such as disposing of its holdings in SoundHound AI, Serve Robotics, and Nano-X Imaging. This had an immediate effect on their stock prices, with their share price dropping.

How did Nvidia’s stock moves affect other companies?
While some companies experienced a downturn after Nvidia sold off its holdings, others saw impressive stock gains. For example, Applied Digital saw a 15.2% increase, Recursion Pharmaceuticals jumped 24%, and WeRide’s stock soared by an astounding 84%. Nvidia’s moves in the AI space continue to shape the market.