--- title: "Nvidia Doubled Down on Its Second-Largest AI Holding. Should Investors Follow Suit?" type: "News" locale: "en" url: "https://longbridge.com/en/news/286825369.md" description: "Nvidia has significantly increased its stake in CoreWeave, now owning over 47.2 million shares, valued at $4.9 billion. CoreWeave, a leading neocloud provider, reported a 112% revenue growth to $2 billion in Q1, with a backlog of $99.4 billion. Despite not being profitable yet, its growth and Nvidia's support may attract investors looking to capitalize on the AI boom." datetime: "2026-05-18T22:27:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286825369.md) - [en](https://longbridge.com/en/news/286825369.md) - [zh-HK](https://longbridge.com/zh-HK/news/286825369.md) --- # Nvidia Doubled Down on Its Second-Largest AI Holding. Should Investors Follow Suit? Artificial intelligence (AI) has been on a blistering run over the past several years, and its adoption shows no signs of slowing. These cutting-edge algorithms promise to change the technology landscape as we know it, and it's been a windfall for companies at the forefront of this technology. Nowhere is that more apparent than in **Nvidia** (NVDA 1.38%). The AI-centric chipmaker pioneered the graphics processing units (GPUs) that create lifelike images in video games. Those same processors are now the gold standard for powering AI, making Nvidia the de facto flag-bearer for the technology. In the first quarter, Nvidia effectively doubled its position in **CoreWeave** (CRWV 3.27%), prompting investors to take a fresh look at the neocloud operator. ![A long row of rack servers in a data center. ](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA4NTEvYS1sb25nLXJvdy1vZi1yYWNrLXNlcnZlcnMtaW4tYS1kYXRhLWNlbnRlci5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## The case for neoclouds Cloud computing became widely available more than two decades ago, providing businesses with on-demand computing services. Neoclouds are the latest version of these services, offering GPU-as-a-service (GPUaaS) and AI-as-a-Service (AIaaS). CoreWeave is the largest and most well-known of these neocloud providers. CoreWeave has a strategic partnership with Nvidia, giving the company something of a competitive advantage. By collaborating with Nvidia, CoreWeave has access to the company's most recent state-of-the-art AI chips. Nvidia already had a sizable position in CoreWeave, owning more than 24.2 million shares. According to a regulatory filing released after the market close on Friday, Nvidia nearly doubled its holdings in the first quarter, bringing its total stake to more than 47.2 million shares. In all, Nvidia owns roughly 11% of CoreWeave's outstanding stock, a stake currently worth $4.9 billion and 20% of the chipmaker's equity portfolio. Expand ![Nvidia Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: NVDA Nvidia Today's Change (-1.38%) $-3.11 Current Price $222.21 ### Key Data Points Market Cap $5.5T Day's Range $218.37 - $230.00 52wk Range $129.16 - $236.54 Volume 5.4M Avg Vol 171M Gross Margin 71.07% Dividend Yield 0.02% When he announced the investment earlier this year, Nvidia CEO Jensen Huang expounded on the opportunity, saying: > CoreWeave's deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry. Together, we're racing to meet extraordinary demand for Nvidia AI factories -- the foundation of the AI industrial revolution. Given Nvidia's growing ties to CoreWeave and its massive vote of confidence, should investors follow suit? ## Paint the numbers CoreWeave's growth is compelling. In the first quarter, revenue surged 112% year over year to $2 billion, while its loss per share was essentially flat at $1.40. Perhaps as important is the company's backlog, which surged 284% year over year to $99.4 billion, which provides insight into future revenue. In fact, CEO Michael Intrator said on the earnings call that "demand is accelerating across the board." Expand ![CoreWeave Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NSV1YucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: CRWV CoreWeave Today's Change (-3.27%) $-3.50 Current Price $103.80 ### Key Data Points Market Cap $59B Day's Range $98.67 - $106.95 52wk Range $63.80 - $187.00 Volume 1.7M Avg Vol 28M Gross Margin 34.82% As CoreWeave continues to expand to meet unrelenting demand, the company is investing heavily in capital expenditures (capex), with 2026 spending expected to range from $31 billion to $35 billion. Despite the heavy investment, CoreWeave said, "Our deployments continue to be profitable at the contract level." This suggests that as the company scales, the profits will likely come. ## Ready for prime time? CoreWeave isn't yet profitable, but it did keep the red ink static in the first quarter. Value investors will likely take a hard pass at the company's lack of profits, despite its stellar growth. That said, the stock is selling for roughly 8 times sales, down from its mid-2025 peak of 27 times sales. On the other hand, Nvidia -- which is _highly profitable_ -- and selling for just 27 times forward earnings, gives investors another way to play the AI boom. That said, Nvidia's mentorship, combined with the company's accelerating revenue growth, might make it worth owning a small stake in CoreWeave as part of a balanced portfolio. ### Related Stocks - [CRWV.US](https://longbridge.com/en/quote/CRWV.US.md) - [CWVX.US](https://longbridge.com/en/quote/CWVX.US.md) - [CRWG.US](https://longbridge.com/en/quote/CRWG.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [CRWU.US](https://longbridge.com/en/quote/CRWU.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Rafay Systems Brings Software Standardization to Neocloud and Sovereign AI Factories Through Its NVIDIA-Validated Platform](https://longbridge.com/en/news/286296922.md) - [Nvidia’s AI Lead Is Back in Focus as Wolfe Research Doubles Down](https://longbridge.com/en/news/286680544.md) - [Who Knew Glass Was So Important to AI? Corning's (GLW) Q1 Report Made It Clear](https://longbridge.com/en/news/286857040.md) - [ZAWYA: Veeam unveils intelligent ResOps for the agentic AI era, turning data context into faster, more precise recovery](https://longbridge.com/en/news/286763694.md) - [The haves and have nots of the AI gold rush](https://longbridge.com/en/news/286653126.md)