Nvidia discloses new stake in Applied Digital; maintains Arm Holdings, SoundHound stakes
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AI chip-making powerhouse Nvidia (NASDAQ:NVDA) has disclosed a new investment in digital infrastructure solutions developer, Applied Digital (NASDAQ:APLD).
As of Sept. 30, Nvidia’s (NVDA) holdings in Applied Digital (APLD) totaled around $7.72M shares, worth around $63.66M, according to the chip giant’s latest 13F filing. That equates to a roughly 3% stake.
Shares of APLD surged in extended trading Thursday after the stake disclosure and were up over 4% Friday morning.
Based in Dallas, Texas, Applied Digital designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing and artificial intelligence industries in North America. In its fiscal first quarter ended Aug. 31, the company incurred a net loss of $4.2M on revenue of $60.7M (+67% Y/Y).
In Sept., the data-center/AI cloud firm secured $160M funding from a group of investors, including Nvidia (NVDA) and Related Companies. The deal brought fresh capital for Applied Digital (APLD) and is expected to help fund growth at the company and underpin planned debt-financing deals.
Nvidia (NVDA) has been ramping up its investment activity amid the AI boom, backing companies that use its chips. The company also participated in a $100M financing round for Japanese AI research company, Sakana AI.
Elsewhere, the chip giant maintained its positions in biotech company Recursion Pharmaceuticals (RXRX) (7.71M shares), Arm Holdings (ARM) (1.96M shares), SoundHound (SOUN) (1.73M shares), Nano-X Imaging (NNOX) (59,632 shares) and Serve Robotics (SERV) (3.73M shares).
The Arm (ARM) stake is still the biggest, totaling $280.41M. Recall that Nvidia (NVDA) had tried to buy Arm for $40B back in 2020, but regulatory pressure forced it to scrap the deal in 2022. Shares of Arm Holdings (Arm) has jumped ~98% YTD.
Shares of Arm (ARM), Recursion Pharmaceuticals (RXRX), SoundHound (SOUN), Nano-X (NNOX) and Serve Robotics (SERV) were -0.67%, -0.87%, +0.15%, -0.33% and +3% premarket, respectively.