hey what's up everyone welcome back to my world of stocks now as uh some of you may or may not be aware of Nvidia actually has their own fairly large venture capital division that invests in other AI companies by directly buying their individual stocks now these are usually much smaller tech companies that can really benefit from Nvidia's help and expertise in areas of artificial intelligence robotics gaming and other similar technologies to help them grow larger over time which in return may help their stock prices climb too and thus benefiting Nvidia from their success as well well it's gotten to the point where these investments are so large now for Nvidia that they actually are required now to file a 13F report to the SEC every quarter so coming straight from the source in today's video we're going to uh quickly run through the six AI companies that Nvidia is directly investing in and I'll show you how much money they have in each of these stocks i'll share my own personal opinion on each one of them and of course I'll let you know if I own any of them if I would buy them and I'll even rank them from best to worst too based on my opinion so it's going to be a ton of fun uh some more kind of speculative AI stocks here to look at so make sure you smash that like button and subscribe if you haven't already thank you for that support but it's going to be a good one let's go ahead and just jump straight into it now uh normally we run through these from smallest to largest but instead I'm going to do it the opposite way today and start with the biggest holding first and that's because it was actually the newest purchase for them and it was a brand new addition to the portfolio this past quarter yet it's already their largest holding at a whopping 78% so that's pretty crazy there a big purchase here and that stock is Coreweave ticker symbol CRWV which they now hold almost $900 million of in the portfolio now this one's pretty interesting here it's actually a stock that I've never covered before on the channel and part of the reason for that is because they just recently IPOed this year back in March but if you've never heard of them they're essentially an AI infrastructure company that owns and operates a bunch of data centers across the US and Europe that they then lease out to customers allowing them to use these data centers remotely through the cloud along with all of their of course GPUs that they house which currently sits north of a quarter of a million and they're then used to run all kind all kinds of different AI workloads so if you're a company and you're trying to do a bunch of stuff with AI but you don't have all of the expensive equipment to run it yourself well you can just pay a company like Coreweave to use all of theirs instead as cool as that might sound though it's actually not a very unique business in fact there's tons of competition in that space including by the way giant behemoths like Amazon Microsoft Google and more now CW does at least try to differentiate themselves by offering more specialized and custom solutions at more affordable pricing than really their larger rivals which has at least been working so far helping them steal some market share as last quarter for example the first one being reported here as a public company it showed sales skyrocketing by more than five times the amount that they generated the year before and while the company is not yet profitable on a GAP basis uh they are at least generating positive adjusted EBIDA and they even carry a revenue backlog of more than $25 billion worth including an almost 12 billion deal signed with OpenAI as well as another 7 billion signed with Applied Digital so this company is no joke and the future is definitely looking bright for them at least at the moment however valuation-wise we've now seen the stock soar by over 300% since IPO leaving their price to sales ratio skyhigh at more than 25 now for reference a PS of around one or less is considered attractive and typically we can go a little higher for a young growth stock like this but you know more than 25 is definitely pushing it a bit and it's probably why the average analyst covering the stock thinks that it's actually going to crash by over 50% in the next 12 months now I don't personally see that happening cuz I just think that there's really too much positive momentum going on for the company at the moment so I just think as long as they can continue to announce new deals being signed in the coming months and years that should be enough to help keep the stock elevated and keep the hype you know pouring into this company as a stock but overall the valuation is still too high to really get me excited here and while I do think that uh it makes perfect sense for a company like Nvidia to invest in them and even partner with uh you know a data center specialist like this that will obviously be buying and utilizing so many of Nvidia's GPUs um I just think that for an outside investor like myself that is not already in the stock I'd rather see at least a few more quarters if not a few years of performance with their business and how they deal with so much competition out there and how they perform financially before I can you know confidently invest in a stock like this i I'll be nice though i'm going to rank them number three for now until we see what else is on this list since they do at least have some pretty nice growth rates but it's not a stock that I'm buying at the moment coming in at stock number two though we have what many consider to be a much lower risk uh option here than that previous one and what is actually another chips related company in ARM Holdings ticker symbol AR ARM uh which Nvidia currently holds over a hundred million of at just over 10% of the overall portfolio and yeah there's actually a lot to like about this one arm has a very strong business after designing really what is the most popular chip architecture in the entire world which many other chips are actually built on including by the way around 99% of all smartphone processors which ARM then gets to collect royalty and licensing fees on every single one sold and the reason why it's so popular is because ARM is a much simpler and more battery efficient architecture as opposed to x886 and are thus perfect for use in small devices with still really a lot of room for future growth too in areas of you know not just the internet of things where they power over 300 billion devices already but even as they become more powerful while still maintaining high efficiency they're being adopted for even larger devices and higher compute workloads including you know in cloud and servers and AI now Nvidia themselves saw so much potential in this company that they even tried to flat out acquire them at one point uh before ultimately being blocked by regulators because of how powerful it would have made the combined company as a result though Nvidia's only choice really left was to simply invest in the stock which after IPOing in 2023 it's now climbed by over 150% and although their financials are soaring by more than 20% a year on both the top and bottom line their valuation remains ultra rich with even the most forgiving metric of all a forward-looking PEG ratio it's still hovering around 60% more expensive than the rest of the sector now you compare that to Nvidia who actually trades around 35% cheaper than the sector and you can see why I would rather you know just invest in Nvidia instead which I guess gives me a little bit of indirect exposure to ARM 2 which I'm happy about i'm glad that they own it but at this valuation it's not an individual stock that I would be rushing out to buy unless we saw a bigger dip with them i do think it's a safer choice than Coreweave though so I'll give them the slight edge here on our rankings for that reason uh up next though we actually have one of those companies that just partnered with Coreweave which makes sense for a lot of these companies to really be partnering up together maybe Nvidia is kind of facilitating some of this but that stock is Applied Digital ticker symbol APLD which Nvidia now owns over $40 million of worth about 4% of the overall portfolio and look if you've never heard of this one well they're actually very similar to Coreweave in that they too build and host these large uh nextgen really data centers for high performance computing cloud and AI interestingly though blockchain operations and cryptocurrency hosting is currently the largest part of of their business which makes sense for why Nvidia would want to invest in that area as their own chips are often used for crypto mining too with AD themselves using tens of thousands of NVIDIA GPUs within their own data centers for which they've seen very large demand for with their sales nearly tripling last year in large part thanks to the rise in popularity for crypto in these recent years unfortunately though this is still an unprofitable company that reported record losses last year and although they are seeing a major improvement going forward the stock is still fairly expensive here after climbing about 50% this year and although it is technically down over half its value from the pandemic highs well their PS ratio still hovers around 10 which is a bit high again I feel that this is a pretty similar stock to Coreeave which I'm not very interested in buying either one of them at these valuations but I suppose that I would give the slight edge here to Apply Digital in the rankings for really four kind of quick reasons here number one their market cap is only less than 3 billion while Coree is more than 70 uh number two their PS ratio is less than 10 while Coree is more than 25 and number three on average analysts think that the stock will climb by double digits while predicting core will instead crash by over 50% and finally number four I kind of like the differentiator of applied focusing more heavily on side markets like crypto even though that can be more volatile which is a bit of a trade-off but combined with the other reasons that I just mentioned I feel that it's just an overall better option so I'll put them in Core Weeb's spot at number three and I'll push CW down one spot to fit it in all right guys that's three down but we still have three more to go so I'll try to be a little quicker here and coming in at stock number four we actually have the only one of the list that I own a very small position in myself it's a very risky one i'm warning you and it's one that I think most people should really stay away from but I took a small speculative position in it just in case for the future and that stock is Recursion Pharmaceuticals ticker symbol RXRX which Nvidia owns over $40 million of now the reason why I took a little piece of it recently is in large part because of how heavily beaten down the stock is down over 85% since IPOing a few years ago despite the future potential that I feel they really have now financially you're not going to find much here as the company is not yet profitable and it generates way more in losses than they even do in sales as they're only in the early stages right now of signing new deals and developing new drugs but where all of the long-term potential lies is in their biotech platform that uses artificial intelligence to discover new drugs at lower costs with higher efficiency thus reducing the time it takes to research identify and even develop new treatments now that's that can be very revolutionary long term and it's already attracted several giants to want to partner up with them like Ro uh Bear Merc and of course even Nvidia who's already helped recursion build what is literally the most powerful biotech supercomputer in the entire world that is being used for analyzing over 50 pabytes of health related data that they acquired from another partnership with Tempest and that right there all of that alone just makes it really interesting for me as an investor for how much data data that they have and all of the power and infrastructure that they have to utilize and and analyze all of that data and use it so long-term uh that I feel just could be a very powerful growth driver if they're successful but at the moment it's just too risky and too speculative I think for most people to handle with also the richest valuation of the group so far at at least on sales at a PS ratio of more than 27 so I'm going to put them around the middle at number four and I'll move everything else up one spot to fit them in all right coming in at number five though we have a fairly new one i believe that uh they were just added the quarter prior so it's pretty interesting here and that was in uh Nebius ticker symbol NBIS which they now hold around $25 million of and for this one if you've never heard of it well they are yet another cloud computing company for example operating a very large AI focused data center in Finland which also happens to use tons of NVIDIA GPUs that it then rents out to customers so that they can build train and run their own AI models and applications using the hardware and software solutions provided by Nebius at usually a much smaller fee compared to their bigger rivals in the space obviously this is a very very similar business here to to the other companies that we've already discussed but where they really kind of differ at least slightly is in uh some of the subsidiaries that they own too like to uh Tollica for example which helps customers analyze organize fix and prepare all of their data for use in training models they also have triple 10 which is a leading online education platform and they even own a self-driving technology and robotics company called AV Ride which is based in Texas and has already collected more than 22 million miles of autonomous driving and so in turn all of these kind of different businesses in one is actually resulting in a lot of growth for Nebius at first glance though their financials don't make a whole lot of sense you might get confused by them cuz it goes from like hundreds of billions of dollars in sales to suddenly crashing down to millions last year but that's because the company was actually spun out from a giant Russian one called Yandex which is kind of like the Google of Russia and this happened because of the Russia Ukraine war where the owners have now sold off all of their Russian assets so that they can distance themselves really excuse me from uh all of the controversies going on in the area now moving forward though while still not profitable uh the new company is still generating plenty of growth with adjusted sales rising by over 460% last year now it's still not as high as their losses but given how deep and diversified the businesses at least within AI uh I actually find them to be the most interesting one among really Coreweave and Applied Digital so I'm giving them the edge here at number two i'm going to push the others down one spot to fit it in it's still too chaotic for me to own as I'd rather see a couple more years of uh financials and and performance before investing in them but I just think in interest- wise they at least catch my interest a little more uh finally though at number six we have the smallest holding of the bunch which was also a new pickup the quarter prior just like uh Nebius and that is in Wide ticker symbol WRD which Nvidia currently owns about $24 million of and as the name suggests this is a self-driving company however it's a Chinese one that develops autonomous vehicles for not just robo taxis but also various public works and projects too for example They were the first to launch an unmanned sanitation project in the city of Donguan with a robo sweeper service launching the very next month in the city of Shantau but robo taxis are really just as important for them too as they gained regulatory approval back in August for their robo bus to start charging fairs in the city of Hankkin uh it's a very interesting company to invest in especially considering the trillions of dollars that analysts project the robo taxi market to grow into but for me personally I already own several stocks with similar exposure like Tesla Google Amazon and even BU in China and although the company is just getting started and carries a beaten down stock price that I could see being attractive to new investors I just think we already have a better option here with Nebius who doesn't carry the added baggage of being a Chinese stock with a risky VI structure so for those reasons I'm giving Wide the last place ranking here at number six and I'm moving everything else uh up one spot to fit it in but hey there you have it guys overall some very risky stocks here in AI but maybe that's what you're looking for so if that's the case then let me know if any of these piqu your interest at all and let me know if you agree or disagree with my rankings on them uh or any changes that you would make to it i'd love to hear from you down in the comments section below like I said the only one of the list that I own just a very tiny piece of myself is recursion but it's just a long-term kind of spec play that I don't have a a huge amount of confidence in more just kind of gambling a little bit on that one but hey either way I hope you enjoyed this video and I thank you guys for watching i hope you're all doing well my friends and I will catch you in the next one all right take care everybody bye-bye [Music]