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Nvidia Reduces Stake in Arm Holdings, Reveals Investment in China's WeRide

On February 14, Nvidia disclosed a 44% reduction in its stake in the British chip firm Arm Holdings, along with exiting its positions in Serve Robotics and SoundHound AI in the fourth quarter, as per a regulatory filing on Friday.

The prominent artificial intelligence chip company also revealed a holding of 1.7 million shares in China's self-driving startup, WeRide Inc, leading to a 94% increase in WeRide's shares.

WeRide utilizes Nvidia's advanced graphics processors and AI software for its vehicles, with a market valuation of $4.71 billion as of the latest closing. Nvidia was an early investor in WeRide.

Investors closely follow Nvidia's stake adjustments for companies it invests in or divests from, gaining insights into the growth strategy of the leading artificial intelligence chip designer.

Nvidia's stake of 1.2 million shares in the AI cloud firm Nebius Group led to an 8% increase in Nebius Group's shares in the quarter ending December 31.

In a strategic move, Nvidia reduced its stake in Arm by 43.8% to 1.1 million shares, valued at approximately $181 million at the close of trading on Thursday.

According to Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James, "While trimming its Arm Holdings position may raise some eyebrows, the move into Nebius and WeRide aligns with its long-term AI strategy."

Arm, down by 5%, provides essential intellectual property licensed by companies like Apple and Nvidia for creating their chips.

Last year, during a restructuring, struggling chipmaker Intel invested in Arm.

Furthermore, Nvidia divested its holdings in Serve Robotics, recognized for its sidewalk delivery robots, and Israel-based medtech company, Nano-X Imaging Ltd, resulting in a 42% and 13% share decrease, respectively.

SoundHound AI, a voice assistant maker, experienced a 29% decline in its shares.