Nvidia has become the third-most valuable company in the world, with a market valuation of $2. 2 trillion, mainly due to the surge in its stock price. The company's data center revenue has seen a significant increase, driven by the popularity of its graphics processing units (GPUs) for AI technologies. With its newfound wealth, Nvidia has invested in five AI companies, including Arm Holdings, Nano-X Imaging, Recursion Pharmaceuticals, TuSimple Holdings, and SoundHound AI. Arm Holdings is particularly notable as it designs processors for major semiconductor companies, while SoundHound AI specializes in conversational AI technology.

Despite their potential, both stocks are considered expensive. Arm is valued at $133 billion with a price-to-sales ratio of 45. 5, while SoundHound AI has a valuation of $2. 5 billion with a P/S ratio of 55. 5. However, long-term investors might find value in these companies, especially with Nvidia's support.