Nvidia has built a $99 billion equity portfolio from almost scratch in 2 years
Nvidia's equity portfolio ballooned from around $2 billion to nearly $100 billion in two years as the AI chipmaker backed several tech peers.
Nvidia has amassed an equity portfolio valued at nearly $100 billion over the course of two years, according to its latest earnings report. This represents a staggering 14-fold increase from $7 billion in equity investments just last summer and a 45-fold growth from $2.2 billion two summers ago. The company's investment strategy involves backing its tech peers, with CEO Jensen Huang stating that this helps customers meet demand for AI products and services.
As of July 26, Nvidia held approximately $48 billion in publicly traded stocks and marketable securities, $48 billion in shares of private companies, and $3 billion in equity-method investments. In addition, the company has committed another $25 billion in equity investments. Nvidia's portfolio includes significant stakes in companies like Intel, SpaceX, and CoreWeave, among others.
Despite this massive growth, Nvidia still lags behind Alphabet in terms of total equity holdings. Nvidia's stock has surged from under $15 in early 2023 to $228 at the end of June, contributing to the company's current market capitalization of $5.5 trillion, making it the world's most valuable company. The AI chipmaker's investments are aimed at powering the AI boom by providing necessary semiconductors and financing AI infrastructure development.
However, some industry observers have raised concerns about Nvidia's aggressive growth strategy, questioning whether it is overreaching in its efforts to finance and invest in its customers.
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