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10.10.2024 13:45:00

Nvidia Bet Millions on This AI Stock. It's Up 165%.

Earlier this year, Nvidia (NASDAQ: NVDA) revealed that it invested capital in several promising artificial intelligence (AI) companies. Management clearly believed the investments would pay off, but it also positioned the company as a direct enabler of its end markets.After all, Nvidia isn't an AI company itself. Rather, it supplies the AI industry with critical components like graphics processing units, or GPUs. By investing in the overall growth of AI, Nvidia can not only book a potential investment profit, but also spur long-term demand for its own products.No matter how excited Nvidia management was about its capital allocation decisions, few likely predicted what would happen with one of the investments. Following Nvidia's $3.7 million investment in February, SoundHound AI (NASDAQ: SOUN) saw its valuation soar by 165%. And there could be even more upside to go. Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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