Nvidia Quietly Boosted Its Stake in This AI Stock That's Climbed 120% in 5 Months. Should You Follow?

Key Points

• Nvidia is invested in six tech-related stocks and chose to increase its holding of only one in the recent quarter.

• The AI giant works hand in hand with this young company.

• 10 stocks we like better than CoreWeave ›

You may not think of Nvidia (NASDAQ: NVDA) from an investor's point of view. After all, it's not a financial services company or an individual. It's a chip designer focused on artificial intelligence (AI) products and services. This business has helped the company grow earnings in the double and triple digits to record levels in the billions of dollars.

So Nvidia has shown that it can be a powerful tech player... but it's also demonstrated that it can wear an investing hat. The company owns more than $4 billion in shares of six companies that each are involved in technology, and in the latest reporting period, Nvidia boosted its stake in one of these players. In fact, this particular company now makes up most of Nvidia's portfolio -- so it's fair to say Nvidia is optimistic about that company's future.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Let's check out the details and find out if this Nvidia favorite, a stock that's climbed 120% in the past five months, may be a good investment for you.

Image source: Getty Images.

The AI stock Nvidia is buying

So, first let's consider Nvidia's operation. The company added to its position in CoreWeave (NASDAQ: CRWV), a cloud company that offers high-powered compute to customers building or operating AI platforms.

In the second quarter, Nvidia increased its CoreWeave position by about 0.4% to 24,277,573 shares for a market value of more than $3.9 billion. Nvidia initially purchased shares in the first quarter. (CoreWeave launched its initial public offering in March.)

This recent move lifts CoreWeave to a weighting of more than 91% of Nvidia's portfolio from 78% in the previous quarter.

It's not surprising that Nvidia likes CoreWeave as the two companies, in a way, work hand-in-hand. Nvidia designs the world's top performing graphics processing units (GPUs), and CoreWeave makes them readily available to customers. CoreWeave has a fleet of more than 250,000 Nvidia GPUs, and customers may rent access to them by the hour or over the long term across about 32 data centers.

CoreWeave was the first to make Nvidia's Blackwell architecture and chip generally available earlier this year, and in recent weeks it was the first to make the update -- Blackwell Ultra -- available too. So customers know they can immediately get in on Nvidia's latest chips if they go to CoreWeave.

Revenue that's tripled

This helped revenue more than triple to $1.2 billion in the second quarter, and the company increased its forecast for full-year revenue by $250 million to the range of $5.15 billion and $5.35 billion. Of course, this high growth also involves a great deal of investment from CoreWeave -- the company predicts at least $2.9 billion in capital spending in the third quarter. And, considering this, the company isn't yet profitable, but this isn't surprising at this stage of the growth story.

CoreWeave has planned an acquisition of Core Scientific to gain ownership of infrastructure, and I see this as a strong move for two reasons. First, it's structured as an all-stock transaction so won't add to debt, and second, this will reduce lease liability overhead by more than $10 billion. So, over the long run, this move could favor lower costs and earnings growth for the company.

So, now, let's return to our question: Should you follow Nvidia into CoreWeave? It's important to remember that CoreWeave does carry some risk. The company isn't yet profitable, as mentioned, and it does face competition from big cloud service providers such as Amazon's Amazon Web Services and Alphabet's Google Cloud, though it does differentiate itself with services purposely designed for AI. Still, these factors could weigh on growth and the stock price, meaning, if you're a cautious investor, CoreWeave may not be the best choice for you right now.

That said, if you're an aggressive investor looking to get in on a high-potential AI stock for a good price, you may want to follow Nvidia and buy CoreWeave shares. Though the stock has soared in the triple digits from its IPO, in recent weeks, it's dipped about 50% from its high. This offers investors a reasonable entry point.

And the points I talked about above, including the confidence of AI bellwether Nvidia, are reasons to be optimistic about CoreWeave's potential to deliver a win over the long term.

Should you invest $1,000 in CoreWeave right now?

Before you buy stock in CoreWeave, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,288!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,031,659!*

Now, it’s worth noting Stock Advisor’s total average return is 1,056% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy.