Nanox shares surge after Nvidia reveals holding in medical imaging company
Nanox shares surge after Nvidia reveals holding in medical imaging company
Nanox acquired fellow Israeli company Zebra Medical in November 2021 in which the AI chipmaker had invested
Shares of Israeli medical imaging company Nanox surged on Thursday after Nvidia disclosed it had a stake in the company. Nanox’s stock rose by around 50% along with additional AI firms after the world's most dominant artificial intelligence chipmaker revealed it owns shares in them.
The rally showed Nvidia's growing influence in the AI world as its market value grows at a scorching pace, making it the third most-valuable U.S. company.
Nvidia said it owns 59,362 shares, totaling roughly $380,000 of Nanox. Nanox acquired fellow Israeli company Zebra Medical in November 2021 in which Nvidia had invested.
Nanox shares had fallen by over 70% from last June’s high entering trading on Thursday. Its stock rallied in May and June after announcing that it had received a 510(k) clearance from the U.S. Food and Drug Administration (FDA) to market the multi-source Nanox.ARC, including the Nanox.CLOUD, its accompanying cloud-based infrastructure.
Nanox.ARC is a stationary X-ray system intended to produce tomographic images of the human musculoskeletal system adjunctive to conventional radiography on adult patients.
The FDA cleared Nanox.ARC for use in professional healthcare facilities or radiological environments, such as hospitals, clinics, imaging centers, and other medical practices by trained radiographers, radiologists, and physicians.
Nvidia revealed that its largest investment of $147.3 million was in Arm Holdings, the chip designer that Nvidia failed to buy after the $80 billion deal hit the antitrust hurdle two years ago.
Nvidia had indicated interest in purchasing shares of Arm during the British company's Nasdaq debut last year.
Nvidia disclosed its stakes as of December 31 in a 13F filing late on Wednesday. The regulatory disclosure is closely watched by investors and is generally associated with moves made by fund managers rather than public companies.
Shares of biotech firm Recursion Pharmaceuticals, in which Nvidia invested nearly $76 million, gained 12.7%.
Last year, Nvidia had said it would invest in Recursion to speed up training of the Salt Lake City, Utah-based firm's AI models for drug discovery.
The Silicon Valley megacap firm also invested nearly $3.7 million in conversational voice assistants developer SoundHound AI, sending its shares 53% higher to $3.47.
SoundHound shares were the most actively traded across U.S. exchanges minutes after the opening bell, with 70 million shares changing hands, nearly seven times its 25-day moving average volume, according to LSEG data.
Reuters contributed to this report
