Nvidia (NVDA), the world’s largest company by market cap following the AI boom, has deployed significant capital into strategic investments across the AI ecosystem. The chipmaker has taken a large stake in Intel (INTC) to boost CPU capabilities, invested heavily in SpaceX via xAI, and holds a smaller position in cloud provider CoreWeave (CRWV). These investments, totaling billions, are aimed at expanding Nvidia’s own AI and chip manufacturing infrastructure, though investors are cautioned about the risks of overexposure to the AI sector.
Nvidia (NVDA) is the biggest company in the world by market cap, with its valuation surging after the arrival of AI. Nvidia’s AI chips are currently the benchmark in the sector.
The top three companies Nvidia has invested in include Intel (INTC). Nvidia made a sizable investment in Intel to ramp up its CPU capabilities, as agentic AI relies more on CPU power than GPU power.
Nvidia poured nearly $5 billion into Intel for a near 4% stake. The value of that stake has since grown to around $30 billion.
The second company Nvidia has invested in is SpaceX (SPCX). Nvidia did not directly invest in SpaceX during its IPO, but instead put $10 billion into xAI during a funding round earlier this year.
xAI eventually fell under SpaceX’s umbrella. After SpaceX’s IPO, Nvidia automatically became an investor via its xAI investment.
The third company is CoreWeave (CRWV), a cloud provider focused on GPU-accelerated infrastructure. Unlike Intel and SpaceX, Nvidia has a relatively small position in CoreWeave, at less than $5 billion.
Nvidia’s positions in these companies come from the company’s need to expand its own AI and chip manufacturing capabilities. While it may seem like a lucrative decision, there are risks to being overexposed to the AI sector.
The AI sector currently represents a massive portion of the US stock market. Many are skeptical about AI spending and caution about a potential bubble, making it safer for investors to diversify their portfolios.
