Shares of Nano-X Imaging (NNOX.US), US medical imagining technology company, are slumping 25% today, erasing a big part of last week's gain. Shares of the company rallied last week after Nvidia disclosed that it holds a stake in the company worth around $380 thousand.
Nvidia is among investors' favorites after its shares rallied over 200% in 2023 on the back of AI-hype. It has been quite common over the past year for companies, who signed a partnership agreement with Nvidia, to see their share prices rally as investors expect those to benefit from AI revolution as well. It looks like a similar approach is being taken to companies in which Nvidia is holding a stake. However, in case of Nano-X Imaging it could be evidence that investors in such hot markets as we have today are acting first and thinking later.
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Open account Try demo Download mobile app Download mobile appNvidia held a stake in Zebra Medical, an Israeli startup focused on using AI technology in reading medical images, since at least 2017, when it was first disclosed in regulatory filling. However, Zebra was acquired in 2021 by Nano-X Imaging in an all-stock merger, meaning that Nvidia received shares in Nano-X for its Zebra Medical shares.
Last week's disclosure from Nvidia was made via an 13F filling, which is a filling required by companies whose investment portfolio exceeds $100 million. Nvidia has likely surpassed this threshold last year, following IPO of Arm Holdings ($147 million Arm stake is the biggest in Nvidia's portfolio). Summing up, Nvidia most likely did not make any investment into Nano-X recently, and today's pullback on Nano-X stock like means that investors have realized it over the long US weekend.
Source: xStation5
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