Since June 2021, Nvidia’s shares have surged by over 586%, showcasing its significant growth. Nvidia’s strategic investments include four U.S.-listed stocks: Arm Holdings, Recursion Pharmaceuticals, SoundHound AI, and Serve Robotics. SoundHound AI, specializing in AI chat systems, saw a 129% rise in shares in 2024. Arm Holdings, a leader in semiconductors, had an 80% increase this year. Serve Robotics, focused on food delivery robots, faced challenges with a 27% decline in shares since May. Recursion Pharmaceuticals uses AI for drug discovery but saw a 10.5% decline this year. Nvidia’s portfolio, extending to over 40 companies, highlights its commitment to innovation and technological advancement.

SoundHound AI: A Rising Star in AI Chat Systems

SoundHound AI has been one of the standout performers in Nvidia’s portfolio this year. The company’s shares have surged by 129% in 2024, which is impressive but still slightly behind Nvidia’s own 144.8% increase for the year. SoundHound AI specializes in creating artificial intelligence chat systems that offer lifelike, conversational voices for applications in cars, television, and customer service. With the increasing integration of AI in various industries, SoundHound AI is poised for significant growth, expecting its revenue to rise by over 50% this year. This growth trajectory highlights the potential of AI-driven solutions in enhancing user experiences across multiple platforms.

SoundHound AI (SOUN) Technical Analysis

Price and Moving Averages:
The stock closed at 4.84, with a daily high of 4.99 and a low of 4.82. The chart shows two key moving averages: the 50-day moving average (blue line) at 5.03 and the 200-day moving average (red line) at 3.46. The price is currently below the 50-day moving average, indicating a potential short-term bearish trend, but above the 200-day moving average, suggesting a long-term bullish trend.

Volume:
The volume is relatively low at 310,210, which could indicate low trading interest or consolidation.

Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... More (RSI):
The RSI stands at 48.25. An RSI between 30 and 70 is considered neutral. This indicates that the stock is neither overbought nor oversold, suggesting no imminent reversal signal.

On-Balance VolumeThe On Balance Volume indicator (OBV) is a technical analysis tool used to measure the flow of money into and out of a security over a specified period of time. It is a cumulative ... More (OBV):
The OBV is at 864,800,817. The OBV has been declining, indicating that volume on down days is higher than on up days, which is a bearish sign.

Stochastic RSIIn the realm of technical analysis, the Stochastic RSI (StochRSI) emerges as a powerful tool for traders seeking to navigate market dynamics with precision. Developed by Tushar S. ... More:
The Stochastic RSI is at 0.172, which is close to the lower bound of 0. This indicates that the stock is oversold and may experience a short-term rebound.

Average Directional IndexThe Average Directional Index (ADX) stands as a cornerstone indicator in the toolkit of technical traders, offering insights into the strength of market trends. Developed by Welles... More (ADX):
The ADX is at 19.35, which is below 20. This suggests that the current trend is weak, and there is no clear directional strength.

Chaikin OscillatorNamed after its creator Marc Chaikin, the Chaikin Oscillator stands as a formidable tool in the arsenal of technical analysts. This oscillator is designed to measure the accumulati... More:
The Chaikin Oscillator is at -2,371,587, indicating that the accumulation/distribution line is falling. This is generally a bearish signal, suggesting that there is more distribution (selling pressure) than accumulation (buying pressure).

Trend Analysis:
The price shows a downward trend from the peak around $12, followed by a consolidation phase. The recent price action seems to be forming a base around the current price level of 4.84. The downward trend from the peak indicates selling pressure, but the price staying above the 200-day moving average suggests long-term support.

Support and Resistance:
Support is observed around the 200-day moving average at 3.46. Resistance is likely around the 50-day moving average at 5.03 and further resistance around the previous highs near 12.

Time-Frame Signals:

• 3 months: Hold. Given the current consolidation and weak trend signals, it is advisable to hold the stock and wait for clearer signals.
• 6 months: Hold. The stock might continue to consolidate, and it would be prudent to wait for stronger trend indications.
• 12 months: Buy. The long-term bullish trend indicated by the price staying above the 200-day moving average suggests potential for upward movement over a longer period.

In summary, the stock is currently in a consolidation phase with weak trend signals. Short-term signals suggest holding, while long-term signals suggest potential for upward movement.

Arm Holdings: Leading the Charge in Semiconductors

Another key investment for Nvidia is Arm Holdings, a global leader in high-powered semiconductors. Arm’s shares have seen a robust increase of nearly 80% this year, showcasing its strong market performance. Arm Holdings is renowned for its innovative semiconductor designs that power a wide array of devices, from smartphones to servers. This strategic investment aligns with Nvidia’s focus on advancing semiconductor technology and reinforces its commitment to driving innovation in the industry.

ARM Technical Analysis

Price and Moving Averages:
The stock closed at 137.13, with a daily high of 138.41 and a low of 132.41. The chart shows two key moving averages: the 50-day moving average (blue line) at 117.65 and the 200-day moving average (not visible but likely much lower given the context). The price is above the 50-day moving average, indicating a potential bullish trend.

Volume:
The volume is relatively high at 8,874,500, which indicates significant trading interest.

Relative Strength Index (RSI):
The RSI stands at 70.09. An RSI above 70 indicates that the stock is overbought, suggesting a potential for a short-term pullback.

On-Balance Volume (OBV):
The OBV is at 167,884,358. The OBV has been relatively stable but shows a slight upward trend, indicating that volume on up days is higher than on down days, which is a bullish sign.

Stochastic RSI:
The Stochastic RSI is at 1.000, which is at the upper bound of 1. This indicates that the stock is heavily overbought and may experience a short-term correction.

Average Directional Index (ADX):
The ADX is at 18.35, which is below 20. This suggests that the current trend is weak, and there is no clear directional strength.

Chaikin Oscillator:
The Chaikin Oscillator is at 10,883,367, indicating that the accumulation/distribution line is rising. This is generally a bullish signal, suggesting that there is more accumulation (buying pressure) than distribution (selling pressure).

Trend Analysis:
The price shows an upward trend with recent strong movement above the 50-day moving average. The stock experienced a pullback in the past but has since recovered and is now in an uptrend. The recent price action indicates bullish momentum.

Support and Resistance:
Support is observed around the 50-day moving average at 117.65. Resistance is likely around the previous highs near 160, as there is no significant resistance level shown in the current range.

Time-Frame Signals:

• 3 months: Hold. Given the overbought condition indicated by the RSI and Stochastic RSI, a short-term pullback is possible. Holding the stock is advisable to wait for a better entry point.
• 6 months: Buy. The stock shows a bullish trend and accumulation, suggesting potential for upward movement. Buying on dips could be a good strategy.
• 12 months: Buy. The long-term bullish trend indicated by the price action and accumulation signals suggests potential for continued upward movement over a longer period.

In summary, the stock is currently in an upward trend with strong bullish signals, but short-term overbought conditions suggest a potential pullback. Short-term holding is recommended, while medium to long-term buying on dips is advisable.

Serve Robotics: Navigating the Challenges of Food Delivery Robots

In contrast to the successes of SoundHound AI and Arm Holdings, Nvidia’s investment in Serve Robotics has faced some challenges. Nvidia owns 14% of Serve Robotics, a company that develops mobile robots for food delivery. Serve Robotics initially listed via an alternative public offering (APO) and debuted on OTC markets last August through a reverse merger. The stock subsequently uplisted to the Nasdaq in an April IPO but has since declined by 27% from its mid-May highs. Despite this setback, the potential for growth in the autonomous delivery sector remains significant, with ongoing advancements in robotics and AI technology.

Serve Robotics (SERV) Technical Analysis

Price and Moving Averages:
The stock closed at 2.89, with a daily high of 3.03 and a low of 2.75. The chart shows two key moving averages: the 50-day moving average (blue line) at 14.41 and the 200-day moving average (red line) at 29.69. The price is significantly below both the 50-day and 200-day moving averages, indicating a strong bearish trend.

Volume:
The volume is relatively low at 400,600, which indicates low trading interest or consolidation.

Relative Strength Index (RSI):
The RSI stands at 24.84. An RSI below 30 indicates that the stock is oversold, suggesting a potential for a short-term rebound.

On-Balance Volume (OBV):
The OBV is at 6,716,097. The OBV has been relatively flat, indicating that volume on up days is roughly equal to volume on down days, showing no clear trend in accumulation or distribution.

Stochastic RSI:
The Stochastic RSI is at 0.983, which is close to the upper bound of 1. This indicates that the stock is overbought on a short-term basis despite being in a general downtrend, which is unusual and may indicate a short-term spike or false signal.

Average Directional Index (ADX):
The ADX is at 56.84, which is above 25. This suggests a strong trend, and given the context, it is likely a strong bearish trend.

Chaikin Oscillator:
The Chaikin Oscillator is at -1,192,056, indicating that the accumulation/distribution line is falling. This is generally a bearish signal, suggesting that there is more distribution (selling pressure) than accumulation (buying pressure).

Trend Analysis:
The price shows a strong downward trend as indicated by its position well below both moving averages. The recent price action shows some stabilization around the current level of 2.89 but overall indicates a bearish sentiment.

Support and Resistance:
Support is observed around the current price level at approximately 2.75. Resistance is likely around the previous minor highs near 3.50 and significantly higher at the moving averages.

Time-Frame Signals:

• 3 months: Hold. Given the oversold condition indicated by the RSI, a short-term rebound is possible, but the overall bearish trend suggests caution.
• 6 months: Sell. The strong bearish trend and low price action indicate continued downside risk.
• 12 months: Sell. The price is significantly below major moving averages, suggesting a prolonged bearish trend and potential further decline.

In summary, the stock is currently in a strong downward trend with low volume and bearish indicators. Short-term holding may be advisable to see if an oversold rebound occurs, but medium to long-term selling is recommended due to the strong bearish trend.

Recursion Pharmaceuticals: Pioneering AI in Biotech

Recursion Pharmaceuticals, another notable investment for Nvidia, is leveraging AI to discover treatments for rare diseases such as cancer and neurofibromatosis. Despite the broader anticipation of a resurgence in biotech stocks, Recursion’s shares have decreased by about 10.5% this year. This decline underscores the volatility and inherent risks associated with biotech investments. However, the innovative approach of combining AI with drug discovery positions Recursion as a potential game-changer in the pharmaceutical industry.

Recursion Pharmaceuticals (RXRX) Technical Analysis

Price and Moving Averages:
The stock closed at 9.01, with a daily high of 9.22 and a low of 8.72. The chart shows two key moving averages: the 50-day moving average (blue line) at 9.04 and the 200-day moving average (red line) at 9.25. The price is currently below the 200-day moving average and around the 50-day moving average, indicating a mixed trend with a slight bearish bias.

Volume:
The volume is relatively moderate at 3,394,200, which indicates a fair level of trading interest.

Relative Strength Index (RSI):
The RSI stands at 50.98. An RSI between 30 and 70 is considered neutral. This indicates that the stock is neither overbought nor oversold, suggesting no imminent reversal signal.

On-Balance Volume (OBV):
The OBV is at 113,606,079. The OBV has been declining, indicating that volume on down days is higher than on up days, which is a bearish sign.

Stochastic RSI:
The Stochastic RSI is at 0.404, which is a neutral to slightly oversold condition. This indicates potential for a rebound if the stock has been in a downtrend recently.

Average Directional Index (ADX):
The ADX is at 14.67, which is below 20. This suggests that the current trend is weak, and there is no clear directional strength.

Chaikin Oscillator:
The Chaikin Oscillator is at -1,673,880, indicating that the accumulation/distribution line is falling. This is generally a bearish signal, suggesting that there is more distribution (selling pressure) than accumulation (buying pressure).

Trend Analysis:
The price shows a downward trend from the peak around $16, followed by a stabilization phase. The recent price action seems to be hovering around the moving averages, indicating a lack of clear directional movement.

Support and Resistance:
Support is observed around the recent lows at approximately 8.50. Resistance is likely around the 200-day moving average at 9.25 and further resistance around the previous highs near 12.

Time-Frame Signals:

• 3 months: Hold. Given the neutral RSI and weak trend signals, it is advisable to hold the stock and wait for clearer signals.
• 6 months: Hold. The stock might continue to consolidate, and it would be prudent to wait for stronger trend indications.
• 12 months: Buy. If the stock breaks above the 200-day moving average, it could indicate a longer-term bullish trend, suggesting potential for upward movement over a longer period.

In summary, the stock is currently in a mixed trend with weak directional signals. Short-term holding is recommended, while long-term buying could be considered if the stock shows signs of breaking above key resistance levels.

A Broad and Diverse Portfolio

Beyond these publicly traded stocks, Nvidia’s investment portfolio extends to over 40 companies, including its 87 subsidiaries and operating units, as well as 13 merged entities and pending acquisitions. Many of these investments are in private companies, accessible only to qualified investors. This extensive and diverse portfolio reflects Nvidia’s strategic approach to growth, focusing on areas with high potential for technological advancement and market disruption.

Nvidia’s Strategic Vision

Nvidia’s investment strategy is a testament to its forward-thinking vision and commitment to innovation. By investing in companies at the forefront of AI, semiconductors, robotics, and biotech, Nvidia is positioning itself to capitalize on emerging trends and technologies. These investments not only diversify Nvidia’s revenue streams but also reinforce its leadership in driving technological progress across various industries.

Insights

1. Nvidia’s investments reflect a strategic focus on emerging technologies.
2. SoundHound AI and Arm Holdings are strong performers in Nvidia’s portfolio.
3. Serve Robotics and Recursion Pharmaceuticals illustrate the volatility in tech and biotech sectors.
4. Nvidia’s diverse portfolio underscores its vision for long-term growth.

The Essence (80/20)The Origins and Evolution of the 80/20 Principle The Discovery by Vilfredo Pareto In 1897, Italian economist Vilfredo Pareto uncovered a striking pattern in his study of wealth and... More

• Core Topics:
  • Nvidia’s investment in AI, semiconductors, robotics, and biotech.
  • High-performing stocks: SoundHound AI and Arm Holdings.
  • Volatile investments: Serve Robotics and Recursion Pharmaceuticals.
  • Extensive portfolio reflecting a commitment to innovation.
• Detailed Descriptions:
  • SoundHound AI: Specializes in AI chat systems; 129% increase in shares, projecting significant growth in AI integration across industries.
  • Arm Holdings: Leader in semiconductor technology; 80% increase in shares, critical for various devices.
  • Serve Robotics: Develops food delivery robots; 27% decline in shares, but potential growth in autonomous delivery.
  • Recursion Pharmaceuticals: Uses AI for drug discovery; 10.5% decline in shares, indicating biotech investment risks.
  • Diverse Portfolio: Over 40 companies, including private firms, reflecting strategic growth in technological advancements.

The Guerilla Stock Trading Action Plan

1. Monitor Key Investments: Track performance and developments in SoundHound AI, Arm Holdings, Serve Robotics, and Recursion Pharmaceuticals.
2. Diversification Strategy: Emulate Nvidia’s approach by diversifying investments across emerging technologies.
3. Long-term Vision: Focus on companies with innovative technologies and potential for market disruption.
4. Risk Management: Be aware of the volatility in tech and biotech sectors and plan investments accordingly.

Blind Spot

Potential overlooked detail is the regulatory and competitive challenges in the AI and semiconductor industries. Nvidia’s reliance on innovative tech might face hurdles from governmental policies and increasing market competition, potentially impacting future growth.

Looking Ahead

As Nvidia continues to grow and evolve, its strategic investments in both publicly traded and private companies will play a crucial role in shaping its future. While not all investments may yield immediate returns, the long-term potential of these innovative companies aligns with Nvidia’s overarching goal of pioneering advancements in technology. Investors looking to understand Nvidia’s growth prospects would benefit from examining these strategic investments, as they offer valuable insights into the company’s vision and direction.

In summary, Nvidia’s portfolio reflects a blend of high-performing stocks like SoundHound AI and Arm Holdings, alongside more volatile investments such as Serve Robotics and Recursion Pharmaceuticals. This diversified approach underscores Nvidia’s commitment to fostering innovation and maintaining its competitive edge in the rapidly evolving tech landscape.