More Than 95% of Nvidia's $4.3 Billion Investment Portfolio Has Been Put to Work in These 2 Scorching-Hot Artificial Intelligence (AI) Stocks

Core Investment Focus - Nvidia's public investments are heavily concentrated in two primary AI companies, CoreWeave and Arm Holdings, which together account for over 95% of its $4.33 billion assets under management [6][7][13] - CoreWeave represents 91.4% of Nvidia's invested assets, with Nvidia holding 24,277,573 shares valued at approximately $3.96 billion [7][8] - Arm Holdings accounts for 4.1% of Nvidia's portfolio, with 1,101,249 shares valued at $178.1 million [13] CoreWeave Overview - CoreWeave is focused on providing data-center infrastructure services and has aggressively invested in AI-GPUs, purchasing 250,000 of Nvidia's Hopper chips [7][10] - The company is projected to see sales growth from an estimated $5.25 billion this year to $19.55 billion by 2028, contingent on meeting Wall Street's expectations [9] - Despite rapid sales growth, CoreWeave faces significant financial challenges, including over $1 billion in interest expenses and a projected net loss of $1.2 billion for the year [10] Arm Holdings Overview - Arm Holdings generates revenue primarily from royalties and licensing fees related to its intellectual property, rather than manufacturing physical chips [14][15] - The company reported a gross profit margin of 97.2% in its fiscal first quarter, with net sales of $1.053 billion against a cost of sales of only $30 million [15][16] - Arm's unique position in the market allows it to benefit from growing demand for energy-efficient AI chips, while also being less vulnerable to potential downturns in the AI sector due to its diverse applications in CPUs and smartphones [17][18] Valuation Considerations - Arm Holdings is currently valued at a forward price-to-earnings (P/E) ratio of 61, which may be considered excessive given its expected sustained growth rate of 20% [18]