Investors have plenty of reasons to be optimistic about Nvidia (NVDA) , but a hidden company asset may lie in one of its own investments.
The market-leading chipmaker has struggled since the year began, battling volatile market conditions and contending with the unexpected threat of DeepSeek, a Chinese startup that rolled out a large language model (LLM) built on less advanced Nvidia chips. This posed a new challenge for the company, even as the artificial intelligence (AI) market continued to grow.
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Meanwhile, U.S. President Donald Trump’s tariffs against multiple trade partners sparked significant uncertainty that pushed down entire financial markets, taking even leading tech stocks with them.
The past few months haven’t been easy, but with 40% gains since April, NVDA stock is almost back in the green for the year. Part of this momentum may be due to progress from an unexpected source.
Nvidia CEO Jensen Huang has helped the company make some excellent investments over the past year.
Image source: SOPA Images/Getty Images
A Nvidia investment is one of the season’s breakout stocks
With much of the coverage Nvidia receives focusing on price action and institutional investing, it can be easy to overlook the fact that the tech leader has positions in other companies. But Nvidia’s biggest investment is currently on a winning streak.
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CoreWeave (CRWV) is an AI startup that made a splash with its initial public offering (IPO) on March 28, 2025. After months of no major market debuts, investors wondered if this fast-growing startup could help usher in a new wave of tech IPOs.
Founded in 2017 as a crypto mining company, CoreWeave now provides cloud-based graphics processing unit (GPU) infrastructure for clients with AI and machine learning workloads. The company’s webpage notes that it helps manage “the complexities of AI growth to make supercomputing accessible.”
Nvidia has been invested in CoreWeave since April 2023. Data from WhaleWisdom based on 13F filings shows that it currently holds 24,182,460 shares, a position with a market value of roughly $896,685,617. It is Nvidia’s biggest holding by far, occupying more than 78% of the company’s portfolio.
A quick look at Nvidia’s portfolio shows that the company is highly tech-focused. Its next-largest investments are British semiconductor and software producer Arm Holdings and Applied Digital Corp, which provides digital infrastructure solutions. Both companies have enjoyed an excellent month, though their gains pale in comparison to CoreWeave’s.
After its IPO surge, CRWV stock briefly fell, only to quickly start rising again. It is currently up more than 100% since its trading debut, and with gains of almost 50% in just the past week.
Part of this momentum is likely due to news that Nvidia had increased its stake in CoreWeave, as per a regulatory filing, sending shares up 22% in a single trading day.
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Nvidia has made it clear that it believes in CoreWeave’s growth prospects, which indicates investors are likely to feel the same way in the coming months. This successful entrance to a complicated market leaves little room for doubt that other tech startups will likely follow, finally breaking the market out of the 2024 IPO desert.
Nvidia’s AI startup bet is already paying off
With one of Nvidia’s investments performing so well, investors have even more reason to believe the AI leader is destined for more growth. But the fact that the company is increasing its stake in CoreWeave is an extremely valuable endorsement as the AI startup looks to establish itself as a leader among hyperscalers.
Related: Nvidia stock surges after surprising China trade war news
An investment from Nvidia can do wonders for a struggling tech stock. When it disclosed an investment in AI voice company Soundhound Ai, the stock surged well above the penny stock line. However, filings reveal that Nvidia has since cashed out, and Soundhound has struggled significantly since the year began.
That said, CoreWeave investors seem to be in excellent company, as Nvidia remains fully behind the hyperscaler startup. In its annual report, Nvidia provided further context on its investments, stating:
“We acquire and invest in businesses that offer products, services, and technologies that we believe will help expand or enhance our strategic objectives… Further, our investments in publicly traded companies could create volatility in our results and may generate losses up to the value of the investment.”
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