What's Going On With Nvidia Stock Tuesday?

Artificial intelligence kingpin Nvidia Corp NVDA will unlock shareholder value via investment in crucial AI startups and expanding presence across countries. 

Meanwhile, U.S. Commerce Secretary Gina Raimondo revealed ongoing scrutiny of three novel artificial intelligence (AI) accelerators being created by Nvidia for the Chinese market.

The chip designer has significantly increased its investments in AI startups this year. 

The company, aiming to leverage its dominant position as an AI processor provider, reported investing in over two dozen companies in 2023, ranging from large AI platforms to smaller startups in sectors like healthcare and energy, the Financial Times reports.

Also Read: Nvidia Faces Fierce Competition in China, Tencent and Huawei Lead the Charge

Dealroom data shows Nvidia participated in 35 deals in 2023, marking a nearly sixfold increase from the previous year. 

This surge in activity positions Nvidia as the most active large-scale AI investor, surpassing major Silicon Valley venture firms. 

According to Nvidia's recent filings, it made investments worth $872 million in non-affiliates over nine months ending in October, over ten times the same period last year.

Mohamed Siddeek, head of Nvidia's venture arm NVentures, emphasized investing in companies that use and depend on Nvidia technology. NVentures and Nvidia's corporate development team have invested in notable AI firms like Inflection AI, Cohere, Hugging Face, and CoreWeave. Their commonality lies in being Nvidia customers and utilizing its GPU chips or software.

One notable investment includes Inflection AI, which recently raised $1.3 billion in a round co-led by Nvidia, Microsoft Corp MSFT, and others. 

Meanwhile, Nvidia CEO Jensen Huang views Vietnam as a critical location for the company's expansion and plans to establish a legal entity there, Bloomberg reports. 

During a conference in Hanoi on semiconductors and AI hosted by a Vietnam ministry, Huang announced Nvidia's intention to open a design center in Vietnam. 

Nvidia has already invested approximately $250 million in Vietnam.

Huang expressed Nvidia's readiness to assist Vietnam in improving its AI infrastructure and workforce. 

Price Action: NVDA shares traded higher by 0.35% at $467.88 premarket on the last check Tuesday.