in all the double dealing and backro Deals of Washington and Wall Street there's still one way for regular investors to get the same kind of inside information the same kind of information that saw shares of twilio jump 40% in the months after revealing it in our December 6th video or that saw planet lab shoot up 72% in less than 2 months from our video December 13th hey bodai Nation Joseph hog here with an update to one of our most popular series an inside look into the stocks the largest tech companies are buying your opportunity to Pigg feedback on the Investments made by Nvidia Amazon and alphabet this is all from the company's 13f reports a mandatory filing by the Securities and Exchange Commission that is the closest thing to Insider information you can get without the handcuffs that go with it I'll show you how to find those reports and how to use them for those fast double-digit returns later but I want to get to those stocks in this video because Nvidia has just updated its Investments Investments worth over $300 million in five stocks the release of that report LED One stock to more than double $50 9% return in a single day and another to crash 28% when the file was made but I'm going to show you why I'm buying the crashed stock and not the one Nvidia bought I'm going to reveal all the changes to nvidia's recent report including two new stocks three at dropped and three at still betting millions of dollars on first up shares of Chinese autonomous tech company weide ticker WD jumped 159% on news that Nvidia had picked up 1. 7 million shares of the company worth about $30 million or 6% ownersh ship in the company this is a new investment for NVIDIA and came completely out of left field but while I'll highlight this very specific strategy Nvidia is using with its other Investments I think something else is in play here with wide since its Inception in 2017 wide has expanded operations to 30 cities across seven countries though still mostly operating in China the company brands itself as a first mover in that autonomous driving Market with less expensive cars than others in the space and reaching a level four autonomy very near to that self-driving level five that we're trying to get to the company also has a very interesting segment in its public utility vehicles including a robo sweeper Revenue exploded from1 18 million Chinese wand in 2020 to over half a billion in 2022 which is actually still only about $72 million USD but is since Fallen to 365 million Chinese W or about $50 million over the last 12 months China has been going through a major recession so that might explain some of this but not what you want to see in a high growth stocks especially that operating income that is getting progressively worse the company has increased its spending faster than sales and reported a $254 million operating loss over the last year of course the few analysts that are covering the stock see sales booming 189% next year to over 1 billion Chinese W it's about $140 million but the fundamentals here are God awful and the stock trades expensively at 34 times priced to sales but none of that probably matters to Nvidia because I think this is an olive branch to the Chinese government Nvidia has been able to get around some of the export restrictions on semiconductors by creating an alternative to its chips but sales in China have fallen from about 25% to 15% of its total revenue that's still as much as $30 billion and a segment that Nvidia desperately wants to keep alive if restrictions ever get lifted so it would make sense that it would invest in a Chinese AI company to help nurture that ecosystem in the country now with that rough state of we rites finances the shares are too risky for me but could be a good bet if relations between the US and China ever do Tha nebus group ticker MBA is didn't get quite the same bump when Nvidia reported its new investment of almost 1. 2 million shares worth $36 million those Shares are up 114% over the last year so may have already seen a lot of that and while nebus is hooked into the fastest growth themes in AI it feels like they're trying to be everything to everyone here besides the core Cloud platform the company is also building data centers developing an edtech platform and autonomous driving technology now that scope of business is similar to what Amazon and alphabet are doing but then again alphabet has $72 billion in free cash flow that it needs to invest versus nebus which reported a negative FCF of $374 million in the last fiscal year it's kind of like nebus is the kid that signs up for every Club at school for his college applications but then gets named most likely to suck at everything in the yearbook so while nebus is targeting an absolutely giant $260 billion market for cloud and gpus along with another $150 billion market for its other segments I wonder if it's actually going to be competitive in any of them if it tries doing it all all at once sales are expected to keep surging approaching $1 billion next year profitability isn't too far off and and the stock isn't terrifically expensive for that kind of growth at 13 times on a price to sales but I would just go with a more focused player in any of these segments cloud gpus and autonomous alone we've still got three more Nvidia stocks to highlight plus three more is sold out completely but remember we know the company is doing this because every company or large Institutional Investor is required to file a form 13f with the Securities and Exchange Commission the SEC disclosing their investments in publicly traded stocks that disclosure is meant to help the SEC head off any possible stock price manipulation by those hedge funds or or the other big money Players but can also be used by investors to jump in on those Investments ahead of an acquisition or just a bump in the share price you can always find these 13f filines by going to the SEC Edgar database online and searching for the company name then clicking through to where you see the most recent 13f report for a list of those Investments Now understand that there are different reasons a company buys shares in another and it could mean a difference in the return for investors for example as is the case with Nvidia buying shares of arm it's getting a say in a major supplier arm licens is the architecture that goes into semiconductors so it's a critical component not just for NVIDIA but also for its competitors Intel and AMD Nvidia was blocked by the FTC from buying the company outright but an investment just gives it a seat at the table a company may also be interested in a future takeover of another and want to get that foot in the door with a large block of shares to ward off some Ral buyers this might be the case with Amazon and its ownership of Air transport group with nearly a fifth of the company then again there's also just the good old return drivers for investment and companies like Amazon and Nvidia are cash flow machines generating tens of billions of dollars in cash each year and at times they might run out of projects to reinvest that money back into their company so they just look for other stocks to buy you're going to notice in all these stocks in all the 13f videos we've done that the buyers have that inside information into these stocks within their sectors they know which companies are going to do well but then as we say here on the channel it ain't all rainbows and unicorns and there is a warning to using these 13f reports to invest first is that these companies have 45 days after their quarter in to report those to the SEC so there's a big lag to those Investments most of these stocks are going to be held long term so it's not a matter of Nvidia buying them and dumping on a quick return but understand there is a leg to that reporting also though you're going to see these stocks jump when that 13f is reported and often are going to give up some of those gains in the months following it's a big reason I waited about a month after nvidia's 13f update to do this video to to let that initial hype die down in these stocks shares of we I jumped 159% when nvidia's report was filed but are now down back to where they were giving you another opportunity to buy in on the cheek that's why I always recommend use that 13f as a heads up to find stocks to start your research if it looks like a good buy then maybe invest some right away but leave some cash aside to invest if the price does come down later just as important as those new invest Ms are the stocks Nvidia sold during the quarter and in fact I'm taking advantage of the dip to load up on one of these Nvidia sold out of its 3.
7 million share position of serve robotics took her SCV during the quarter and this one is interesting on a couple of points first Nvidia had a giant stake worth 8. 4% of the company and by far its largest ownership position also though because Nvidia was an early supporter of serf putting up $10 million in 2022 before the company was public that prior investment was worth 17 million when serve issued shares last year and I can understand Nvidia cutting back a little but it's a complete 180 to sell all the shares I mean Nvidia is treating serve like a bad breakup from I love you forever to forget my number in just 3 months serve robotics spun out of uber in 20121 and is the leader in sidewalk delivery robots Market it says could be worth 450 billion by 2030 Uber is still a major customer with a multi-year contract for 2,000 delivery robots to be operated by the end of next year the company has already completed tens of thousands of deliveries for Uber Eats 7eleven and other customers one overlooked upside here could be its lead in autonomous vehicle software one of the few to reach level four autonomy so that intellectual property and the potential to reach level five autonomy isn't just valuable for the company and its business but and also other applications that could become a revenue source for surf this all makes me wonder if Nvidia isn't investing in companies for different reasons that we might expect not for those long-term strategic reasons or even for return but just to nurture small AI companies until they can stand on their own basically Nvidia is trying to support the ecosystem that is going to depend on its chips and once a company is self-sufficient and can grow on its own and of course need Nvidia chips through that Nvidia moves on to the next investment in fact the company has said as much in its own marketing investing to grow the AI ecosystem and supporting entrepreneurs now from an Investor's perspective I know it can be hard to imagine that return really doesn't mean as much for a company's investment but this support the EOS system strategy is actually similar to something I used to do as a venture capital analyst a lot of times the firm I worked at would make strategic investments in startups just to make that introduction to another company that we already owned and and build a partnership between the two another company we saw disappear from nvidia's Investments nanox Imaging ticker innx with Nvidia selling its 59,000 shares probably worth about $400,000 at the time of the sale that's not even pocket change for NVIDIA and was only a 1% ownerships in the company so might just be Nvidia moving on from an old investment Nano X runs its Digital Imaging system with an aib based Suite of algorithms to augment that routine CT Imaging helping to find early signs of chronic diseases the company has a current approval with the FDA and is submitted with the EU it's building out a sales and distribution department but this is still a very early stage company with just $110 million in Revenue over the past year and still negative on profits but on that recent Plunge in the shares after that updated Nvidia filing if Nano X can capture just a part of that that Imaging Market it could still be a very good return the most surprising sell by Nvidia is my favorite SoundHound AI ticker s soou n with Nvidia dumping its entire 1. 7 million shares likely worth about $26 million around the time of the sale I first started recommending SoundHound in February of last year around $5 a share and just before the announcement that Nvidia had added the shares at that $25 Peak we were up 394 in less than a year and are still up 99% at the current price now if in did sell the shares on that idea of supporting the ecosystem and then just moving on I think it made a huge mistake dropping soundown and I took advantage of the recent drop to pick up more shares the company is the leader in conversational AI to businesses that can be used to build an AI assistant in 25 languages a market it estimates as large as $160 billion the shares popped 50% in a single day in July when it was reported the company's Voice Assistant would be used across Alpha Romeo and citrone vehicles across Europe it's also being used in a Pia Center or it's been found to produce a 20% increase in productivity even more telling though shares were up 16% on its most recent earnings reporting 101% Revenue growth and guiding to continued sales growth during that call we got more detail on what could be its biggest opportunity launching a call to order system for drive-throughs across the United States the system is in more than 10,000 restaurants across the country and enables users to through its AI Voice Assistant to seamlessly order food sales are expected to double this year to 166 million before slowing down to a 30% Pace next year but I think they continue much faster growth as they develop that call to order and the drive-through Market this is still a very small company at just $4 billion market cap but one of my favorites in the AI space that 394 per return on shares of SoundHound to the Peak from our first video in February may be hard to reproduce but there is one way you can leverage your Investments and get those triple digit Returns the problem is most investors are doing it all wrong while options investing has exploded over the past few years retail investors are losing more than5 billion dollar a year on the strategies that's why I ask those of you out there in the bow tie Nation how you've been using their options investing course and was blown away with the response George made over $26,000 buying the $30 call options on smci a 35% return in Just 2 weeks Justin made a 380 return on a call option strategy in one week and longtime bow TI brother Chad generated over $10,000 in income this month across five stocks from Amazon to Alibaba and Nvidia to help you get started and make sure you're using options 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7 million shares worth about $56 million and a higher 3. 6% ownership of the company here I think this backs up my theory that Nvidia and its Investments is much more about nurturing those AI companies and the ecosystem than it is really in trying to get a return applied is at the heart of the next wave for artificial intelligence that data center buildout the company develops builds and operates data centers and Cloud infrastructure with a focus on those specific needs for Accelerated Computing in AI a really interesting development here has been that transition from the blockchain data centers to those needed for AI operations as that Bitcoin having continues and profitability for mining decreas es we're going to see those data centers repurpose for that high performance Computing and I think applied is positioned to do that with its existing blockchain infrastructure sales for the company are expected to grow by around 50% this year and next in that data center buildout boom but margins are so low here the company just doesn't seem to be getting anywhere on earnings expected to post a 40 cents per share loss this year and next now a price to sales of just six times it's not expensive for a company growing at a 50% pacee but that cash flow is ugly here and getting worse so appli clearly needs Nvidia for that continued support and Nvidia needs appli to keep driving that data center buildout that is going to consume all those Invidia chips another company that still clearly needs Nvidia support is recursion Pharmaceuticals ticker rxrx down 46% over the last year but with Nvidia holding on to its 7. 7 million shares worth about 3.
2% ownership of the company this one has been disappointing because there is so much opportunity here recursion could revolutionize drug Discovery through its language model workflow engine performing complex drug Discovery tasks using that Lang natural language interface it's doing this by running experiments through purpose-built AI models on massive data sets enabling it to screen and find the compounds that won't work first basically to fail faster so it spends less time and money developing the drugs that will work big Pharma companies like MC and Eli Lilly are facing a patent Cliff amounting to nearly $200 billion in Lost Revenue while while also pulling back on their own research spending to find new drugs so through the use of AI recursion could dramatically lower those costs for drug development an advantage that would be worth tens of billions to those big farma companies the company has six programs in its pipeline trials for seven indications four of which are in phase two and expecting results within the next two quarters it's Inked Partnerships with major drug makers like Ro and Bayer but like most biotech stocks the potential is there but it comes in fits and starts when the company announces a breakthrough or an FDA approval or a deal with another company revenue is expected up 63% this year followed by just 36% next but can turn fast f with just one Discovery the company is still unprofitable and with shaky cash flows so definitely still one that needs nvidia's support but with the potential Market size on this and the valuation very much worth the risk for investors the next stock on our list is one Nvidia already tried buying outright but all this stock picking is pointless unless you have a plan how much you need to invest and the goals around it check out the video in the corner here for the five stocks that will replace your income and an investing plan to go with it everything you need to surpass your income in the most surprising change to its 13f Investments was arm Holdings ticker armm where Nvidia reduced its Investments by over 659 th000 shares to 1. 1 million share Holdings still its largest holding though worth $135 million arm Design's microprocessor architecture the blueprint for Semiconductor chips which are the brains of any electronic device it then sells a license for These Blueprints out to chipmakers like Nvidia AMD and Intel to create their semiconductors so it's a critical piece in that chip Supply system system seeing that potential in this Nvidia actually tried to acquire the entire company in 2020 reaching an agreement with SoftBank to buy arm for just $40 billion until the FTC stepped in to stop the acquisition Nvidia still wanted that foothold in the supplier though so it picked up 1.
