Traders placed an unusually large number of bets on two obscure companies at the start of last week, days before a disclosure by chipmaker Nvidia triggered a furious rally in their shares.
Nano-X Imaging, a small Israeli medical device maker, doubled after Nvidia detailed its position in the company in a regulatory filing last Wednesday. SoundHound AI, a Silicon Valley-based artificial intelligence group, rose 69 per cent after the same Nvidia filing highlighted a holding in it.
The explosive market reaction to seemingly trivial updates was the latest sign of investor fervour for stocks that could benefit from the growth of AI, particularly those with any link to Nvidia.
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