Nvidia ( NVDA -3.26%) first disclosed a stake in fellow semiconductor company Arm Holdings ( ARM -5.59%) in the fourth quarter of 2023. The position was valued at $147 million at the time, but a recently filed Form 13F shows the position is now worth more than $280 million and accounts for about 65% of Nvidia's $433 million stock portfolio.

AI could become a multitrillion-dollar industry. There are still high-quality stocks with compelling risk-reward upside potential. Here are three of them.