Posted 2/20/2024, 12:55:00 AM
Nvidia Makes Small Bets on AI Startups While Investors Ride the Hype
- Nvidia makes small bets on AI startups like SoundHound; stock prices surge though goals look unattainable
- SoundHound originally forecasted $110M revenue and $84M profit for 2023, now expected to hit less than half
- Nvidia's $3.7M investment won't sting much if SoundHound fails; Nvidia has over $18B cash and bets on 20 AI firms
- Investors should be cautious riding Nvidia's coattails on hype; Nvidia diversifies but individuals have shallower pockets
- Nvidia also disclosed stakes in Arm and Recursion Pharmaceuticals; their stock prices also rose on hype