Nvidia (NASDAQ:NVDA) is not only a leader in developing the key hardware that powers the artificial intelligence (AI) boom. He is a big investor in other AI companies, often including an equity stake in its commercial relationships. In December, his AI stock portfolio passed the $100 million threshold, requiring him to file a Form 13-F with the SEC revealing all of his holdings.
Nvidia’s portfolio is not very large, containing only five stocks, and 97% of the portfolio is concentrated in just two stocks.
Most of Nvidia’s portfolio is ARM fundsthe chip architecture company that the AI giant attempted to buy for $40 billion in 2020. It ended up grabbing a stake worth $190 million at the current price , which represents only a small part of the company’s $100 billion business.
Nvidia’s second-largest stake represents a much more significant stake in an innovative AI company. This company has also found favor with Cathie BoisArk Invest’s Ark Invest, which purchased more shares earlier this month, strengthening its position as the company’s largest shareholder. It is important to note that investors can still invest in the stock at close to the same level as Nvidia last July. It’s no wonder that Wood and his team have recently acquired shares.
Nvidia’s second stake is a 3.4% stake in Recursive Pharmaceuticals (NASDAQ:RXRX). The company uses AI to mine data and discover potential new drugs. And if it succeeds in developing a breakthrough drug, it could easily become Nvidia’s biggest investment.
Harnessing AI to move faster and reduce costs
Recursion is a biotechnology company that aims to improve the drug discovery process using Big Data and AI. It combines public datasets and its own proprietary data to discover potential new compounds. It then uses its algorithms to filter its compounds into viable candidates to develop to treat rare diseases or precisely target certain cancers.
Recursion claims its process reduces the number of development candidates from its initial screening to less than 10% of what a traditional drug discovery company could make. This allows it to focus only on options with the highest chance of success, allowing it to spend less and act more quickly.
It currently has five treatments in Phase 2 clinical trials. Each treats a patient population of less than 1 million, with most treating a population of less than 100,000 people. This means that if it succeeds in bringing one of these treatments to market, it will likely be the only competitor serving this population.
If Recursion can prove that its method is consistently more efficient, faster, and more cost-effective than other methods in the industry, it presents many opportunities. Not only can it continue to discover and develop new treatments, but it can also license its platform to other drugmakers working in more complex areas. This can provide initial capital to expand operations.
The company already has partnerships in place with rock And Bayer to help discover…
