Nvidia’s Biggest AI Bet Is Crashing Its ‘Secret Portfolio.’ Can It Recover?

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CoreWeave accounts for over 86% of Nvidia’s $3.84B AI investment portfolio.CoreWeave dropped 60% from its June peak to $39B market cap. The company posted $1.36B in Q3 revenue but continues losing money despite strong growth.Nvidia committed to purchase $6.3B of unsold CoreWeave cloud capacity through 2032, but this revenue backstop raises questions about real end-user AI demand.If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more hereNvidia (NASDAQ:NVDA) has assembled a strategic portfolio of public investments in AI-focused companies, including chip designers, data center operators, and infrastructure providers that not many investors are aware of. It consists of six holdings that at the end of the third quarter was valued at approximately $3.84 billion.The dominant position is in CoreWeave (NASDAQ:CRWV), the AI-specialized cloud provider that relies heavily on Nvidia GPUs and accounts for over 86% of the portfolio's value.Nvidia invested $350 million in CoreWeave in two tranches before its March IPO. Having originally invested $100 million in April 2023, it invested another $250 million just before its public debut, giving it a total of approximately 24.2 million shares at $40 per share, securing a 7% stake for Nvidia.Following the IPO, CoreWeave surged to an all-time high of $187 per share in June, but has been on a fairly steady decline since. Despite almost doubling from the IPO price, the stock is down nearly 60% from that peak. On Friday, it suffered another 10% drop, bringing its market capitalization to around $39 billion -- a sharp erosion from the nearly $80 billion it was worth at the end of June.Friday's plunge followed an SEC Form 4 filing revealing that Chief Financial Officer Nitin Agrawal sold 66,467 shares on December 11 at an average price of $82.58, totaling approximately $5.49 million. While investors are often reminded to ignore insider sales because they can sell stock for any reason -- or no reason at all -- those made by CFOs should be noted because of their specialized knowledge of the company's finances.However, Agrawal's transaction stemmed from the vesting of restricted stock units, with the sale covering associated tax withholding obligations. Insider sales are common upon RSU vesting and often serve administrative purposes rather than signaling fundamental concerns. 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