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By Jaspreet Singh
(Reuters) -Nvidia reduced its stake in British chip firm Arm Holdings by about 44% and exited its holdings in Serve Robotics and SoundHound AI in the fourth quarter, a regulatory filing showed on Friday.
The artificial intelligence chip giant also reported a position of 1.7 million shares in China's self-driving startup WeRide Inc, sending its shares up 94%.
WeRide uses Nvidia's advanced graphics processors and AI software to power its vehicles and had a market valuation of $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% after Nvidia reported 1.2 million shares in the AI cloud firm in the quarter ended December 31.
Santa Clara, California-based Nvidia cut its stake in Arm by 43.8% to 1.1 million shares, valuing its remaining stock at about $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, whose shares were down 5%, supplies the crucial intellectual property that firms such as Apple and Nvidia license to create their chips.
Last year, struggling chipmaker Intel sold off its entire stake in Arm during a restructuring.
Nvidia also dissolved its holdings in Serve Robotics, known for its sidewalk delivery robots, and Israel-based medtech company Nano-X Imaging Ltd, sending their shares down 42% and 13%, respectively.
Voice assistant maker SoundHound AI's shares fell 29%.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
