Nvidia CEO Jensen Huang Was Dubbed 'Godfather of AI.' The Company Is Betting On These AI Stocks

Nvidia's latest 13-F filing reveals a strategic and largely successful portfolio of investments in other AI companies, reinforcing its ecosystem dominance. Key holdings include a significant 7% stake in CoreWeave, valued at $3.9 billion in June despite recent fluctuations, alongside positions in Arm Holdings, Applied Digital, and Nebius, many of which have seen substantial gains this year, with some outperforming Nvidia's own stock. While certain investments like Recursion Pharmaceuticals and WeRide have experienced declines, the overall performance underscores Nvidia's expansive influence and strategic positioning across the AI value chain beyond its core chip manufacturing.

Analysis

Nvidia's latest 13-F filing reveals its dual role as both a primary enabler and a significant equity investor across the artificial intelligence landscape. The portfolio is concentrated, with the most substantial holding being a 7% stake in cloud provider CoreWeave (CRWV), valued at $3.9 billion at the end of June. This particular investment highlights the inherent volatility and high-reward potential of Nvidia's strategy; despite more than doubling since its March IPO, CoreWeave's value to Nvidia fell to $2.2 billion by late August following disappointing earnings. In contrast, other strategic investments have shown strong appreciation, such as Applied Digital (APLD), whose value increased from $77 million to over $125 million, and Nebius (NBIS), which grew from $65 million to $85 million over a similar period. This success is not universal, as holdings in Recursion Pharmaceuticals (RXRX) and WeRide (WRD) have seen significant declines of 27% and roughly one-third, respectively. Overall, this mixed-performance portfolio underscores Nvidia's strategy of embedding itself across the AI value chain—from data centers to drug discovery—and serves as a barometer for the health of various sub-sectors, with Nvidia's own upcoming earnings poised to be a pivotal event for the entire ecosystem.

Key Decisions for Investors

• Investors should analyze Nvidia's 13-F filings as a strategic map of the AI ecosystem, using the performance of its portfolio companies as a proxy for the health of key industry sub-sectors beyond Nvidia's core chip business.
• Given the substantial volatility demonstrated by key holdings like CoreWeave, which lost nearly 44% of its value in two months, it is crucial to factor the high-risk, venture capital-like nature of this investment portfolio into Nvidia's overall risk assessment.
• Monitor the interconnected performance of portfolio companies, such as the synergy between Applied Digital and CoreWeave, and pay close attention to Nvidia's upcoming earnings call for management's outlook on the broader AI sector, which will be a key catalyst.