By Keithen Drury
Publication Date: 2026-03-09 12:07:00
Nvidia (NVDA 2.94%) isn’t just a company that makes graphics processing units (GPUs). It also invests in other tech companies that it sees potential in, and one of those was Applied Digital (APLD 10.50%). However, Nvidia recently sold its entire stake in the data center operator, which seems like a huge red flag.
Is there something else going on here? Or do investors have a reason to be concerned by Nvidia’s latest move?
Image source: Getty Images.
Portfolio adjustments aren’t uncommon for Nvidia
We know Nvidia’s investment activity because it has a portfolio of equity investments greater than $100 million. As a result, it is required to file a Form 13F with the Securities and Exchange Commission to disclose its end-of-quarter holdings 45 days after each quarter ends. So, the information that we know now reflects its portfolio as of Dec. 31, 2025.
As of the end of the third quarter, Nvidia owned around 7.7 million shares of Applied Digital, a stake valued at about $177 million at the time. However, it sold all of those shares during Q4.
While investors may be concerned about what led Nvidia to unload that stake, such moves aren’t uncommon for the chipmaker. It closed its similarly sized position in ARM Holdings last quarter as well. And at the start of 2025, it did the same thing with its stake in SoundHound AI.
Yet just because Nvidia isn’t always a long-term investor in tech companies doesn’t mean that you can’t be.
The future is still bright for Applied Digital,…
