Nvidia’s Biggest AI Bet Is Crashing Its ‘Secret Portfolio.’ Can It Recover?

Core Investment Strategy - Nvidia has built a strategic portfolio of public investments in AI-focused companies valued at approximately $3.84 billion, with a significant focus on chip designers, data center operators, and infrastructure providers [2] - CoreWeave, an AI-specialized cloud provider, constitutes over 86% of this portfolio's value [2] Investment Details - Nvidia invested a total of $350 million in CoreWeave prior to its IPO, acquiring approximately 24.2 million shares at $40 per share, which represents a 7% stake in the company [3][7] - Following its IPO, CoreWeave's stock peaked at $187 per share in June but has since declined nearly 60%, with a current market capitalization of around $39 billion [4][7] Insider Activity and Market Reaction - A recent decline in CoreWeave's stock was triggered by the CFO's sale of 66,467 shares, which raised concerns among investors despite being linked to the vesting of restricted stock units [5][6] - The CFO's sale was primarily for tax withholding obligations and does not indicate fundamental issues within the company, as he still retains over 203,000 shares [6] Financial Performance and Future Commitments - CoreWeave reported $1.36 billion in revenue for Q3 but continues to operate at a loss despite strong growth [7] - Nvidia has committed to purchasing $6.3 billion of unsold CoreWeave cloud capacity through 2032, raising questions about the actual demand for AI services from end-users [7]