Nvidia (NVDA, Financials) has disclosed a new investment in Applied Digital (APLD, Financials), a digital infrastructure and cloud services developer.
Based on a quarter ended September 30 regulatory disclosure, Nvidia holds around 7.72 million Applied Digital shares valued at $63.66 million. This comes to around 3% of the total.
Based in Dallas, Texas, Applied Digital offers digital infrastructure solutions for artificial intelligence and high-performance computing projects in North America. With a net loss of $4.2 million on sales of $60.7 million, a year-over-year increase of 67%, the firm reported in the fiscal quarter ended Aug. 31.
Applied Digital raised $160 million in investor money in September from Related Companies and Nvidia among other sources. The money is meant to help debt-financing schemes and firm expansion.
As artificial intelligence solutions’ market keeps expanding, Nvidia has been stepping up its investing operations. The business also took part in a $100 million fundraising round for Japanese artificial intelligence startup Sakana AI.
Apart from its ownership in Applied Digital, Nvidia maintained interests in many firms. Among them are 7.71 million shares of Recursion Pharmaceuticals (RXRX, Financials), 1.96 million shares of Arm Holdings (ARM, Financials), 1.73 million shares of SoundHound (SOUN, Financials), 59,632 shares of Nano-X Imaging (NNOX, Financials), and 3.73 million shares of Serve Robotics (SERV, Financials).
At $280.41 million, Nvidia’s investment in Arm Holdings is still its biggest disclosed holding. Previously aiming at a $40 billion purchase of Arm in 2020, the business shelved its plans in 2022 due to legal obstacles.
Part of a more general drop in semiconductor equities, NVDA is down 3.3% to $142.03. Applied Digital is up 5.2% to $7.23, most likely due to investor hope after Nvidia’s latest 3% ownership declaration.
This article first appeared on GuruFocus.
