Nvidia has a reputation for identifying high-quality companies in their initial stages and betting on their success. Last year, the company participated in more funding rounds than any other company in the US, behind only Alphabet. In the past, it has invested in startups like OpenAI, Perplexity, and Mistral, so when the chipmaker puts its money in some company, people are bound to notice.
A similar occurrence happened when the firm filed its recent 13F report. There were some clear omissions and needless to say, the stock prices of those companies tanked as the market digested the news of divestment. For those still on the list, the stock price reacted positively.
As the Santa Clara-based chipmaker proceeds with these investments, there is also the threat of regulators increasing the scrutiny based on anti-competitive practices. The firm is already facing the threat of anti-competitive charges in France and at home, and the recent acquisition of Run:ai continues to be under scrutiny. It must be said, however, that these challenges do not necessarily have any negative impact on the companies that made it to the 13F.
We decided to take a look at the stocks still on the 13F filing and find out what’s attracting the chipmaker to these companies. Do they have a moat? Are they still worth buying for the average investor? Or have the stocks already rallied too much?
5. WeRide Inc. (NASDAQ:WRD)
WeRide Inc. (NASDAQ:WRD) operates as a holding company serving the logistics, sanitation, and mobility industry. It mainly provides products and services related to autonomous driving for categories like robotaxi, robovan, robosweeper, and robobus. It also offers an app by the name WeRide Go app which serves as a ride-hailing platform. The company’s stock doubled in value after the announcement. The Santa Clara-based chipmaker’s holding in the company is worth $24.6 million according to the corporate filing.
With this move, the chipmaker has also shifted its focus to overseas firms as WeRide is a Chinese company. If Jensen Huang’s judgment of the company’s potential is correct, WeRide could be set for double-digit growth for multiple years to come. The Robotaxi market is just getting started and WeRide is well-positioned to create a strong foothold in the Chinese Robotaxi market.
The announcement also opens up the company to a better relationship with the US companies involved in autonomous driving. It remains to be seen what advantages the company can take from this relationship but the potential is massive.
4. Nebius Group N.V. (NASDAQ:NBIS)
Nebius Group N.V. (NASDAQ:NBIS) is an infrastructure player in the AI industry. It offers a cloud platform for AI workloads and builds large GPU clusters and cloud platforms for customers. When the quarterly corporate filing came out, the stock gained 12%.
This isn’t a significant bump in price, but that is partly because the market was already aware of the exciting opportunity that Nebius presents. Back in December, Citron Research called the company’s CEO ‘the real deal’. They believe the stock could become a Wall Street favorite:
A sleeper with no analyst coverage yet, the market hasn’t caught on to its massive potential
Last month, Hedgeye also initiated the stock as a new long idea. Analyst Felix Wang pointed out the fact that the company had no debt with about $2.2 billion in cash. The company could be profitable by early next year and could become a popular AI stock well before that inflection point.
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