Nvidia's $4.3 Billion AI Stock Bet: The Top 6 Picks

Understanding Nvidia’s AI Stock Portfolio

Nvidia, a leading chipmaker, has made significant investments in the artificial intelligence sector by owning shares in six different AI-focused companies. As of June 30, 2025, these holdings are spread across various stages of growth and profitability. While most of these stocks remain unprofitable, one stands out due to its strong valuation and promising growth potential.

The Six AI Stocks in Nvidia’s Portfolio

Among the six AI stocks in Nvidia’s portfolio, Applied Digital (NASDAQ: APLD) is one of the smaller holdings, with over 7.7 million shares valued at $77.7 million. The company operates in blockchain and high-performance computing data centers, and it's currently in the process of selling its cloud services business.

Another notable holding is Arm Holdings (NASDAQ: ARM), with 1.1 million shares worth $178.1 million. Arm is a major player in semiconductor development, particularly in CPUs, and has shipped over 325 billion chips since its inception.

CoreWeave (NASDAQ: CRWV) is the largest investment in Nvidia’s AI portfolio, with nearly 24.3 million shares valued at approximately $3.96 billion. CoreWeave specializes in AI, offering a cloud platform designed specifically for generative AI applications.

Nebius Group (NASDAQ: NBIS) also plays a key role in the AI space, providing a full-stack cloud platform focused on AI. Nvidia holds nearly 1.2 million shares of Nebius, valued at $65.9 million as of the end of Q2 2025. Recently, Nebius experienced a surge in value after securing a major deal with Microsoft.

Recursion Pharmaceuticals (NASDAQ: RXRX) is unique in that it uses AI for drug discovery. Nvidia owns 7.7 million shares of Recursion, valued at almost $39 million. This stock represents a niche application of AI technology.

Lastly, WeRide (NASDAQ: WRD), a Chinese autonomous driving technology company, is Nvidia’s smallest equity investment, with a stake valued at around $13.7 million. WeRide utilizes Nvidia’s technology in its robotaxis and other autonomous vehicles.

Comparing the AI Stocks in Nvidia’s Portfolio

Half of Nvidia’s AI portfolio consists of large-cap stocks, with Arm being the largest, boasting a market cap of around $163 billion. CoreWeave and Nebius follow with market caps of $57 billion and $22 billion, respectively.

Only one stock in the group is considered small-cap—Recursion Pharmaceuticals—with a market cap of $1.98 billion, which is closer to mid-cap. WeRide and Applied Digital also fall into this category.

In terms of revenue, Arm leads with $4.12 billion over the last 12 months, followed closely by CoreWeave with $3.53 billion. Other companies have significantly lower revenues, with WeRide at the bottom with roughly $410.5 million in sales.

Profitability varies across the portfolio. Arm is the most profitable, with trailing 12-month earnings of $699 million. The rest are either unprofitable or only marginally so, except for Nebius.

Valuation metrics like price-to-sales ratios highlight CoreWeave as the most attractive option, trading at 16.2 times trailing-12-month sales. Applied Digital follows with a ratio of 23.7.

Growth Prospects and Investment Considerations

Looking ahead, analysts project significant growth for CoreWeave, with expected earnings increases of over 72% in 2026. This makes it a strong candidate among Nvidia’s AI investments.

Despite its lack of profitability, CoreWeave continues to invest heavily in infrastructure, positioning itself to capitalize on the growing demand for AI solutions. Its combination of strong growth projections and favorable valuation makes it stand out in Nvidia’s portfolio.

While some investors may be hesitant due to current losses, the long-term potential of CoreWeave could make it an appealing choice for those looking to enter the AI space. However, it's important to consider individual financial goals and risk tolerance before making any investment decisions.