Nvidia (NVDA) Is A Kingmaker, But They Wrecked Soundhound (SOUN) And Saved Another

By Austin Smith Published Feb 20, 11:18AM EST

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Nvidia (NVDA) Is A Kingmaker, But They Wrecked Soundhound (SOUN) And Saved Another — © 24/7 Wall St

24/7 Wall St. Key Points:

Nvidia (NASDAQ: NVDA | NVDA Price Prediction) sold its stake in SoundHound AI (NASDAQ: SOUN), leading to a sharp decline in the stock’s price.
The company also reduced its holdings in Arm Holdings (NASDAQ: ARM), which came as a surprise to some investors.
Nvidia maintained its 7.7 million share position in Applied Digital (NASDAQ: APLD), a stock with high short interest and price targets suggesting potential upside.
While investors wonder whether Nvidia will surge or crash after earnings, the smart money is already looking ahead to ‘The Next Nvidia’ stocks that could soar in 2025. Click here to see the investments that AI experts are buzzing about.

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Transcript:

[00:00:04] Doug McIntyre: So Lee, if. I were any public company in the world. I would want Nvidia to be one of my shareholders because it’s like they’re the superman of the world. So what does it say to the world when the superman holds shares in your company?

[00:00:21] Lee Jackson: Boy, it it says a lot and like most companies like that. They have kind of portfolios that are the company’s portfolio.

[00:00:31] Lee Jackson: And often there are companies that are in the same realm they’re in. And, we’ve had some good luck with, some companies that they own. Some of the ones that we had mentioned that were very cheap and went very high got axed recently.

[00:00:46] Doug McIntyre: Got a no one to sell.

[00:00:48] Lee Jackson: Yeah. Well, when it goes from three to 23, that’s usually a good indication.

[00:00:53] Lee Jackson: What’s on that list that you like? Well, what, what happened is, is, SoundHound AI, who we’ve talked about at length over the last almost four months, was sold by NVIDIA. And it got crushed. I mean, it got absolutely crushed. It went down to like $10, $9, $10. And they also sold a portion of their Arm holdings, which is the big euro chip company, which was kind of a surprise, but well, I guess that’s how they see fit.

[00:01:25] Lee Jackson: One of the stocks that they did add or didn’t add, didn’t sell is one that’s becoming a real, real new favorite of ours. And that’s Applied Digital. And the symbol for that is, it’s on the NASDAQ. It’s APLD. The NVIDIA owns 7. 7 million shares. They didn’t sell any of it recently and, Applied Digital. It’s a long thing to explain, but they design, develop and operate next generation digital infrastructure across the U. S. It will be, performance computing, artificial intelligence, blockchain data centers, the whole nine yards. But I was interested when I did look at it to see, how much stock that they did own. And at 7. 7 million and a $10 stock, that’s a, that’s a fair, that’s a fair amount of stock. And even more importantly, if you look at the stock now, it has some of the same traits that SoundHound had.

[00:02:29] Lee Jackson: It has a huge short interest. I think 40 percent of the float was short. And, again, late last week they were scrambling, but still at 9, some of the targets I saw are up around the 20 level. So even though SoundHound has been taken out, Applied Digital has been put in.

[00:02:51] Doug McIntyre: And as I said, you’re not going to really get a better endorsement than that.

[00:02:56] Doug McIntyre: It’s, it’s, it’s better than having some Wall Street analyst. Say that you’re, you’re a buy.

[00:03:01] Lee Jackson: I mean, it sure is. Yeah, it sure is. And it’s weird. I, I tried to track these stocks and we’ve done a good job. We, our, our, our viewers that traded SoundHound made a bunch of money. Our viewers that traded, Big Bear AI made a bunch of money.

[00:03:17] Lee Jackson: So this is really kind of our third call. And again, like you said, nothing better than being at the stable at, NVIDIA.

[00:03:24] Doug McIntyre: Good. And what’s the symbol again?

[00:03:26] Lee Jackson: Yeah. It’s APLD. It’s applied digital. It trades on the NASDAQ and again at $9. It’s the kind of stock where if you like to trade stocks and I mean, check it out.

[00:03:36] Lee Jackson: Of course. I mean, don’t just buy it on our say so. And again, not not for conservative accounts necessarily, but I think it could be another winner and it’ll be interesting to see because it finished the week strong on huge volume, which shows that the guys that are short stock are a little bit nervous.

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About the Author Austin Smith →

Austin Smith is a financial publisher with over two decades of experience as an investor, analyst, and advisor. He covers stocks, ETFs, Artificial intelligence and personal finance for 24/7 Wall St. Previously, he spent over a decade at The Motley Fool as a senior editor for Fool.com, portfolio advisor for Millionacres, and launched The Ascent to help reader take control of their personal finances.

His work has been featured on Fool.com, NPR, CNBC, USA Today, Yahoo Finance, MSN, AOL, Marketwatch, and many other publications. He is as an advisor to private companies, and co-hosts The AI Investor Podcast with Eric Bleeker.

When not looking for investment opportunities, he can be found skiing, running, or playing soccer with his children. Learn more about Austin's investment approach here.