Nvidia Just Sold Its Stake in Applied Digital and Arm Holdings and Piled Into a New Artificial Intelligence GPU Player Up Over 7,200% Since Its IPO | The Motley Fool

Aside from being the artificial intelligence (AI) chip king, Nvidia (NVDA +1.01%) also has a small investment portfolio. The company tends to invest in key partners, customers, and suppliers and has also invested in compelling AI companies. In some quarters, there is very little movement in Nvidia’s portfolio. But in the fourth quarter of calendar year 2025, the company was active.

Nvidia dumped its stake in Applied Digital (APLD +2.90%) and ARM Holdings (ARM +3.66%) while initiating a new position in a relatively new chip player, one whose stock is up over 7,000% since the company’s initial public offering (IPO).

Selling ARM and Applied Digital

Nvidia has a strong history with Arm, which licenses architecture and other designs used to create central processing units (CPUs) and graphics processing units (GPUs), the semiconductors that train large language models (LLMs). Nvidia actually tried to acquire Arm for $40 billion several years ago, but couldn’t overcome regulatory concerns.

Arm eventually went public in 2023, and Nvidia invested in the IPO. The company now has a market cap of $134 billion and has more than doubled in value since the IPO, so perhaps Nvidia is taking gains here. Nvidia still has a 20-year license agreement for the use of Arm technology, which it plans to use to build CPUs for a range of uses, including robotics and supercomputers.

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