Which stocks is Nvidia (NASDAQ:NVDA) likely to invest in next? That is the question many investors are asking themselves after the leading chip maker filed its first ever 13F in mid-February.
The filing showed that Nvidia owns a small but influential portfolio of stocks centered on the artificial intelligence theme. The filing prompted one of the holdings, SoundHound AI (NASDAQ:SOUN), to quickly appreciate.
It also revealed that Nvidia holds important positions in rival firms. That should continue to be important to moving forward. It is obviously very difficult to accurately determine the mindset of Nvidia’s leadership and where they may or may not next invest. However, one thing is clear, artificial intelligence is the focal point.
Arm Holdings (ARM)
Nvidia currently holds a stake in Arm Holdings (NASDAQ:ARM) stock valued at $47.3 million. It is likely to continue to increase that stake over time in order to gain more influence over Arm Holdings.
Nvidia tried to buy the rival chip making firm a few years ago. EU, U.K. and U.S. regulators worried that it would concentrate too much power within the company. Arm Holdings is one of the most important chip design companies globally and the deal was ultimately shot down on monopoly concerns. ARM ultimately undertook an IPO in late 2023 and has since surged.
Arm Holdings currently sports a market capitalization of more than $77 billion. Nvidia’s $47 million stake is relatively inconsequential and lacking in influence. Thus, I believe Nvidia will continue to increase its stake in ARM shares.
LivePerson (LPSN)
LivePerson (NASDAQ:LPSN) is a logical target for Nvidia moving forward. The company is very clearly interested in the conversational AI vertical based on that recently released 13F.
Should Nvidia seek to further consolidate its future position within the conversational AI space, LivePerson is an excellent choice. For one, LivePerson is a volume leader in the conversational AI space. Its technology has powered more than a billion AI based conversation and messaging sessions.
The company’s most recent earnings report shows that revenues were above the midpoint of guidance. That suggests that it is fundamentally doing well.
The point that I want to make is that it is another well-known name within the conversational AI space in which Nvidia is clearly interested. If Nvidia has ambitions of dominating that space then LivePerson is an excellent target for investors.
Rekor Systems (REKR)
The same logic that applies to LivePerson stock also applies to Rekor Systems (NASDAQ:REKR).
Nvidia’s relatively small stock portfolio is highly AI-oriented. Thematic plays in conversational AI, pharmaceuticals, medical devices and self-driving technology dominate. It is that last theme, self-driving technology, that I want to focus on.
The company leverages artificial intelligence and machine learning to support intelligent infrastructure and future mobility. Nvidia has shown that it is willing to invest in upstart stocks within those thematic verticals I mentioned immediately above. This is all conjecture, but Nvidia very well may next choose Rekor Systems. If it shows up on the next 13F filing its shares will of course jump immediately higher.
If not, Rekor Systems will simply continue to benefit from strong target price upside and analyst support.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
