Nvidia Recently Plowed $3.8 Billion Into These 2 Artificial Intelligence (AI) Stocks
Nvidia Recently Plowed $3.8 Billion Into These 2 Artificial Intelligence (AI) Stocks
Publish Date: 2026-05-31 08:45:00
Source Domain: www.theglobeandmail.com
- Nvidia’s Investment Strategy: Nvidia, known for designing AI infrastructure, also invests in related public and private companies, often its partners like suppliers and customers.
- Doubling Investment in CoreWeave: During the first quarter of the year, Nvidia significantly increased its stake in CoreWeave by 95%, investing over $1.9 billion, highlighting its strategic partnership and reliance on CoreWeave’s AI data centers.
- New Partnership with Coherent: In March, Nvidia announced a new partnership with Coherent, investing $2 billion for research and development and future access to Coherent’s photonics products, underscoring its focus on AI infrastructure.
- Analysis of CoreWeave’s Financial Health: Despite its strategic importance, CoreWeave’s high debt-to-equity and total liabilities-to-equity ratios raise some concerns about its financial stability amidst heavy competition in the data center market.
- Comparison to Other Investments: The article outlines considerations for investors, including a caution against buying Nvidia stock based on The Motley Fool Stock Advisor’s views, highlighting the volatile nature of AI stocks and suggesting to wait for pullback opportunities in certain cases.
- Market Performance of Coherent: Coherent’s stock has surged nearly 370% over the past year, but it also trades at a high forward earnings multiple, indicating its pivotal role in the AI ecosystem though with caution advised on timing for entry.
