Key facts
- Nvidia's equity portfolio reached $99 billion as of July 26.
- The portfolio includes $48 billion in publicly traded stocks and $48 billion in private company shares.
- Nvidia's equity holdings have increased 14-fold in the past year.
- The company holds a $30 billion stake in Intel and a $21 billion position in SpaceX.
- Nvidia's market capitalization has grown to $5.5 trillion.
Nvidia has rapidly built an equity portfolio valued at $99 billion in just two years, positioning itself as a major tech investor. As of July 26, the AI chipmaker's holdings included approximately $48 billion in publicly traded stocks and marketable securities, $48 billion in shares of private companies, and $3 billion in equity-method investments. This portfolio has surged dramatically from about $7 billion a year ago and $2.2 billion two years ago. The company also has an additional $25 billion in equity investment commitments.
Key investments disclosed include a $30 billion stake in Intel and a $21 billion position in SpaceX. Nvidia also holds stakes worth between $2 billion and $5 billion in companies such as CoreWeave, Coherent, Synopsys, and Nokia. This significant expansion has placed Nvidia among the largest tech investors, though it still trails Alphabet's $232 billion equity portfolio.
The dramatic growth in Nvidia's market capitalization to $5.5 trillion, driven by its role in the AI boom, has enabled these investments. Nvidia's finance chief, Colette Kress, explained that the company is investing in AI labs because compute power is a limiting factor for their growth. Nvidia aims to enhance its growth opportunities, cultivate its ecosystem, and strengthen its competitive position through these equity investments.
However, the strategy has drawn criticism. Michael Burry, known for his role in 'The Big Short,' suggested Nvidia is 'overreaching' by financing its customers. Similarly, Mark Cuban expressed concern about the AI boom's heavy reliance on Nvidia funding various companies.