The Nvidia stock surge is now extending to other companies

Wall Street's favorite chip maker disclosed stakes in a handful of AI and other companies this week — and promptly sent shares rising

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A sign is posted at Nvidia headquarters on February 05, 2024 in Santa Clara, California.
Nvidia headquarters in Santa Clara, Calif.
Photo: Justin Sullivan (Getty Images)

Call it The Nvidia Bump. After the chip maker disclosed its stake in five publicly traded AI firms this week, including Arm Holdings and Recursion Pharmaceuticals, most of the companies saw their own stock surge.

The other companies listed in the filing Wednesday were Nano-X Imaging, SoundHound AI, and TuSimple. The AI chipmaker’s largest stake, at $147.3 million, is in semiconductor and software design firm Arm, which it failed to acquire in February 2022.

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Arm stock was down slightly on Thursday. But shares of SoundHound, an AI voice recognition platform, rose 67% Thursday. Nvidia’s stake in the company, which it invested in during a $75 million round in 2017, is worth $3.67 million.

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Nano-X Imaging, which uses AI for medical imaging , saw its stock go up 49% Thursday after Nvidia disclosed a $379.9 million stake in the company. Chinese autonomous trucking company, TuSimple, which has a $3.04 million investment from Nvidia, saw its stock rise 37%. And biotech company Recursion Pharmaceuticals saw its shares jump 14%. Nvidia has a $75.9 million stake in the company.

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Nvidia became the third-most valuable company in the U.S. this week, as a 2024 stock surge sent its market cap past both Amazon and Google parent Alphabet. The company makes the chips powering leading AI chatbots such as OpenAI’s ChatGPT and Google’s renamed chatbot Gemini.

In the three months leading up to Oct. 29, Nvidia’s revenue increased more than three-fold compared to the same period in 2022. Nvidia stock is up a whopping 51.7% so far this year, and the company will release its quarterly earnings on Wednesday next week.

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