NVIDIA Q2 Holdings Exposed: 90% Position Betting on CoreWeave

NVIDIA's Q2 holdings have been revealed, showing that not only is 90% of its position heavily betting on CoreWeave, but it is also building a complete AI ecosystem through diversified investments in downstream application companies.

On Friday, according to NVIDIA's latest disclosed 13F filing, as of June 30, CoreWeave has become an absolute core asset in NVIDIA's portfolio. NVIDIA has concentrated 91.36% of its public holdings on AI cloud service provider CoreWeave, with a total investment amounting to $3.96 billion.

In addition to CoreWeave, NVIDIA also holds shares in several other AI-related companies, including Arm, Applied Digital, Nebius, and AI healthcare company Recursion Pharmaceuticals.

NVIDIA's investments are paying off, with CoreWeave's second-quarter revenue reaching $1.2 billion, more than tripling year-over-year. However, the company's stock price plummeted nearly 21% this week due to revenue backlog growth falling short of expectations and plans to significantly increase capital expenditures in the fourth quarter.

At the same time, CoreWeave faces the first large-scale unlock test after going public. According to FactSet data, about 84% of Class A shares will be unlocked this Friday, primarily held by company insiders and NVIDIA, which may trigger market volatility.

90% Position Heavily Betting on CoreWeave

CoreWeave's position in the AI cloud computing field is becoming increasingly important. The company is the first to provide a complete Blackwell GPU product portfolio at scale, specifically designing data centers for AI workloads, with clients including well-known companies like Cohere, IBM, and Mistral AI.

Analysts predict that driven by AI computing demand, CoreWeave's revenue is expected to grow by 127% next year, potentially reaching $11 billion.

NVIDIA's heavy investment highlights its confidence in the AI infrastructure sector. CoreWeave currently has a market value approximately 36 times Wall Street analysts' forecasted adjusted operating revenue for the next four quarters, even higher than NVIDIA's own multiple of 31 times.

CoreWeave's CEO Mike Intrator stated:

Expanding our capacity and services remains a key factor for our success in this structurally supply-constrained market. The company expects that by the end of this year, the megawatt capacity of its data center network will be nearly double its current level.

Diversified Layout of AI Ecosystem

In addition to CoreWeave, NVIDIA also holds shares in several other AI-related companies. Arm Holdings accounts for 4.11% of its portfolio; this UK chip design company's energy-efficient architecture is widely used in smartphones and is rapidly expanding into the data center sector.

Applied Digital receives a 1.79% investment allocation, as the company specializes in building and operating data center infrastructure for high-performance computing. NVIDIA also holds 1.52% of NEBIUS, a company spun off from Yandex that specializes in providing cloud infrastructure for AI applications In the AI-driven healthcare sector, NVIDIA has invested 0.90% of its shares in Recursion Pharmaceuticals, a company that applies machine learning to drug discovery. Additionally, NVIDIA holds 0.32% of shares in the autonomous driving company WeRide, reflecting its ongoing interest in the automotive field.

CoreWeave Faces Unlocking Pressure and Growth Challenges

CoreWeave is facing multiple challenges, the company currently carries over $11 billion in total debt and is still consuming cash during its network expansion process. A large-scale unlocking may put downward pressure on the stock price, with approximately 5.4% of the circulating shares currently shorted.

Despite this, CoreWeave's customer base remains strong. Tech giants like Microsoft and Meta have raised their capital expenditure forecasts this year and plan to maintain strong spending next year. The company reached a four-year expansion agreement worth $4 billion with OpenAI in May and announced last month the acquisition of data center infrastructure company Core Scientific for approximately $9 billion in stock.

MoffettNathanson analyst Nick Del Deo pointed out that it is currently impossible to determine insiders' willingness to sell, as the company's ownership is highly concentrated in their hands. "This unlocking event will test whether the market's enthusiasm for the AI infrastructure sector remains strong."