Nvidia’s “Secret Portfolio” Shakeup: 2 AI Darlings Are Ditched to Bet on Intel

Nvidia‘s (NASDAQ:NVDA | NVDA Price Prediction) strategic investment portfolio has gained more attention amongst investors as it increasingly targets companies that enhance its AI ecosystem. While the “secret portfolio” has faced headwinds amid questions about AI’s momentum, the spending going on to support it, and the potential for a meaningful return on investment, Nvidia revealed in its latest 13F filing that it sold its entire stakes in two stocks — Arm Holdings (NASDAQ:ARM) and Applied Digital (NASDAQ:APLD), its best-performing stock.

At the same time, AI chipmaker added several new positions, including Nokia (NYSE:NOK) and Synopsys (NASDAQ:SNPS), as well as its investment in Intel (NASDAQ:INTC), which was valued at almost $8 billion at the end of December.

Strategic Shift Away from a Former Target

Nvidia sold its 1.1 million- share position in Arm Holdings, worth about $140 million based on closing prices at the time of the filing. This comes after Nvidia’s failed $40 billion attempt to acquire Arm back in 2020, which was blocked by regulators. The sale may reflect Nvidia’s evolving priorities, as its new partnership with Intel overlaps with some of Arm’s chip design functions, potentially reducing the strategic value of holding Arm stock. Further, its plans to begin manufacturing its own chips puts it in competition with Nvidia, a risk that was highlighted at the time.

However, Nvidia’s portfolio…