Nvidia's First-Ever 13F Filing Shows Stake in Nano-X Imaging

Taking a Look at Nvidia's (NVDA) 13F Filing and Holdings (Nano-X Imagaing: NNOX), Weekly Activity, & Portfolio Update.

Nano-X Imaging Soars Upon Nvidia’s 13F Filing

This past week marked Nvidia's (NVDA) inaugural 13F filing, revealing investments in five companies: Arm Holdings (ARM), Nano-X Imaging (NNOX), Tusimple Holdings (TSP), Soundhound AI (SOUN), and Recursion Pharmaceuticals (RXRX). Detailed below are the investment amounts and respective stakes in each company:

I'm narrowing my focus to Nano-X Imaging (NNOX), a key player within my coverage area, highlighted in Nvidia's (NVDA) recent 13F filing. This document reveals NVDA's ownership of approximately 59,632 NNOX shares, valued at around $380K, which corresponds to a 0.16% stake in the company. Following this disclosure last week, NNOX shares surged by nearly 100%. As an observer optimistic about NNOX's prospects, it's important to clarify a common misconception: despite the significant market reaction, NVDA's acquisition of NNOX shares was not a direct investment in the company.

Here's the sequence of events: NVDA initially invested in Zebra Medical, an Israeli startup known for its AI-driven medical imaging technology, back in 2017. This investment eventually converted into Nano-X Imaging NNOX shares when NNOX acquired Zebra in an all-stock transaction four years later. This transition of shares was not a deliberate investment decision by NVDA but rather the result of the acquisition process. Contrary to the prevailing market belief, NVDA did not directly buy shares in NNOX. NVDA's stake in NNOX only became public through the mandatory 13-F filing, triggered by the growth of its investment portfolio, which included a significant stake in Arm Holdings Plc following its public offering.

The prevailing market belief that NVDA directly acquired shares of NNOX on the open market is a misconception. Caution is advised before getting overly enthusiastic about this development for a couple of reasons. First, NVDA's acquisition of NNOX shares was an indirect consequence of its investment in Zebra Medical, not a deliberate purchase indicating a long-term commitment to NNOX, especially given the minor stake involved. Second, the revelation that NVDA also invested in Tusimple Holdings (TSP), a company currently facing delisting, suggests that NVDA's investment decisions might not always align with the highest standards of capital allocation. While NVDA remains a formidable entity, this scenario underscores the importance of not hastily equating its 13F disclosures with an endorsement of the investment's caliber.

This leads to a nuanced stance on NNOX. While my belief in NNOX endures, it has moderated compared to last year. I view the recent surge in its price as temporary, likely stabilizing after the next earnings announcement, though I acknowledge the possibility of being incorrect. Despite the positive nature of this news, I advise against placing too much weight on it in investment decisions.

Weekly Activity (Feb 12th-16th)

Nothing.

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