Nvidia Just Reshuffled Its $99 Billion Portfolio, and 1 Stock Moved Up the Ranks

Because Nvidia holds investments worth more than $100 million, it has to submit a 13F filing each quarter that details its holdings. This publicly available filing gives investors a clear look at what investment moves the company made in a given quarter, and the market pays close attention to the information due to Nvidia's highly influential position in the artificial intelligence (AI) space.

At the end of the second quarter of Nvidia's current fiscal year, which ended July 26, the company's investment portfolio was worth roughly $99 billion -- and one very high-profile tech stock became one of the AI leader's top holdings in the quarter.

Image source: Getty Images.

SpaceX is now Nvidia's second-largest stock holding

Intel remained Nvidia's largest stock holding at the end of fiscal Q2, with the value of shares in the AI hardware leader's portfolio sitting at roughly $30 billion. Space Exploration Technologies (NASDAQ: SPCX), or SpaceX as it's commonly known, was a newcomer to the portfolio -- but it immediately became Nvidia's second-largest holding. Nvidia's position in SpaceX was worth roughly $21 billion at the end of fiscal Q2. Meanwhile, its CoreWeave stake was worth roughly $4.7 billion.

Nvidia's investments in public companies remain very heavily concentrated in the AI space. While most people might think of rocket launches or the Starlink satellite internet business when they hear "SpaceX," artificial intelligence is actually the most important part of the company's long-term growth strategy.

The company also has partnerships with each of its three biggest investment holdings. SpaceX CEO Elon Musk also committed to using Nvidia's graphics processing units (GPUs) as the primary hardware for his company's data centers. While Musk's decision to stick with the best available offerings for advanced processors isn't terribly surprising, his commitment to using only the company's processors is surprising, as it suggests that Advanced Micro Devices won't even have a chance to win business in the category.

Notably, Nvidia's position in SpaceX actually came from its initial $10 billion investment in xAI, which was merged with SpaceX in February. Nvidia received private SpaceX shares upon the completion of the merger, and these converted into shares in the public company when Elon Musk's company went private in June.

With Musk centering data center build-outs at the heart of SpaceX's growth initiatives, the company is likely to maintain a very close relationship with Nvidia. In addition to leading the market in high-performance GPUs, the company is rapidly gaining ground in the central processing unit (CPU) market. With CPUs increasingly being integrated into data centers to perform AI inference tasks, SpaceX is poised to be a top purchaser of Nvidia's next-gen family of processing hardware.

Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.