Nvidia cuts stake in Arm Holdings, discloses position in China’s WeRide

Nvidia reported a position of 1.7 million shares in China’s self-driving startup WeRide, sending its shares up 88 per cent. PHOTO: REUTERS

Published Fri, Feb 14, 2025 · 11:11 PM

NVIDIA reduced its stake in British chip firm Arm Holdings by about 44 per cent and exited its holdings in Serve Robotics and SoundHound AI in the fourth quarter, a regulatory filing showed on Friday (Feb 14).

The artificial intelligence chip giant also reported a position of 1.7 million shares in China’s self-driving startup WeRide, sending its shares up 88 per cent.

WeRide uses Nvidia’s advanced graphics processors and AI software to power its vehicles and had a market valuation of US$4.71 billion as of the last closing. Nvidia was an early investor in WeRide.

Investors closely monitor Nvidia’s stake disclosures as they can influence the stock prices of companies it invests in or divests from while providing insights into the growth strategy of the dominant artificial intelligence chip designer.

“There is no greater vote of confidence than Nvidia taking a stake in your company,” said Dennis Dick, trader at Triple D Trading.

Shares of Nebius Group rose 8 per cent after Nvidia reported 1.2 million shares in AI cloud firm in the quarter ended Dec 31.

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Santa Clara, California-based Nvidia cut its stake in Arm by 43.8 per cent to 1.1 million shares, valuing its remaining stock at about US$181 million as of Thursday’s close.

“While trimming its Arm Holdings position may raise some eyebrows, the move into Nebius and WeRide aligns with its long-term AI strategy,” said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.

Arm supplies the crucial intellectual property that firms such as Apple and Nvidia licence to create their own chips.