Nvidia Has 74% of Its Portfolio Invested in 2 Artificial Intelligence (AI) Stocks

Nvidia (NASDAQ: NVDA) sits at the center of the artificial intelligence (AI) boom by supplying customers with critical data center hardware and software. Given its deep insight into the artificial intelligence economy, keeping tabs on where Nvidia invests money can be a good way to find emerging winners

As of December, Nvidia had 74% of its portfolio in two AI infrastructure stocks: 61% in Intel (NASDAQ: INTC) and 13% in CoreWeave (NASDAQ: CRWV). But most Wall Street analysts think only one of those stocks is worth buying at current prices.

• Among 50 analysts, Intel has an average target price of $54.50 per share. That implies 13% downside from its current share price of $63.
• Among 35 analysts, CoreWeave has an average target price of $125 per share. That implies 13% upside from its current share price of $110.

Of course, investors should never assume Wall Street's short-term forecasts are accurate. It's more important to understand a company's long-term growth prospects before buying or selling shares.

Image source: Getty Images.

Intel: 61% of Nvidia's portfolio

Intel is the largest supplier of central processing units (CPUs) for personal computers and data center servers, but the company lost its leadership position in chip manufacturing technology to TSMC in 2017. Since then, Intel has lost substantial market share to rivals AMD and Arm across both markets, and the tide is unlikely to change directions.

Apple has already moved to Arm-based CPUs, and the Microsoft Windows ecosystem is making a similar transition. Last year, Arm CEO Rene Haas told Reuters that his company could have over 50% market share in Windows PCs within five years. Intel faces similar trouble in data centers, where major technology companies like Alphabet, Amazon, and Microsoft have deployed Arm CPUs.

In 2021, Intel launched its third-party chip manufacturing business, Intel Foundry. It saw an opportunity to capitalize on demand for advanced semiconductors while strengthening the U.S. chip supply chain. The company set an ambitious goal of surpassing Samsung as the second-largest foundry by 2030, but it has not yet won any external customers for its next-generation 14A node.

However, Intel recently announced a partnership with Nvidia that could help it play a more important role in artificial intelligence infrastructure. For consumers, Intel will combine its personal computer CPUs with Nvidia GPU chiplets. For enterprises, Nvidia will combine its AI infrastructure (GPUs and networking) with custom Intel server CPUs.

Wall Street estimates Intel's adjusted earnings will increase at 57% annually through 2027. While encouraging, that forecast still makes the current valuation of 150 times adjusted earnings look expensive. I am skeptical about the foundry push, and I doubt Intel will be a major player in AI infrastructure anytime soon. So, I think investors should look for more compelling opportunities.

CoreWeave: 13% of Nvidia's portfolio

CoreWeave provides specialized cloud infrastructure and software services purpose-built to support AI tasks. Its platform offers up to 20% better GPU cluster performance for training and inference workloads compared to alternative clouds, and CoreWeave has consistently been ranked as the best AI cloud on the market by research company SemiAnalysis.

"CoreWeave continues to set the benchmark for AI cloud performance by demonstrating strong technical execution and operational maturity in managing large-scale AI cloud solutions," said Dylan Patel, CEO and chief analyst at SemiAnalysis. The more recent report also says CoreWeave offers the lowest total cost of ownership for AI infrastructure among cloud providers, which lets the company command premium prices.

CoreWeave has won a litany of large customers, including AI research labs Anthropic and OpenAI, as well as hyperscalers Alphabet, Meta Platforms, and Microsoft. However, the company has taken on substantial debt to fund data center construction projects, and the interest expense on that debt consumed 23% of revenue in 2025, up from 19% in 2024. If interest expense continues to outpace revenue, that would be a red flag.

Wall Street estimates revenue will increase more than 800% by 2029, representing annual growth of 73% over the next four years. Against that forecast, the current price-to-sales ratio of 9.6 looks reasonable. That makes CoreWeave a relatively attractive investment idea, so long as operating margin moves toward management's long-term target of 25% to 30% in the coming quarters.

Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Intel, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing and is short shares of Apple. The Motley Fool has a disclosure policy.