GoKawiilNvidia’s $5 billion purchase of Intel stock last year, made as part of the companies’ strategic AI infrastructure partnership announced in September, has become a highly lucrative investment, generating nearly $25 billion, the company revealed in an SEC filing this week. In addition, Nvidia owns nearly $21 billion worth of SpaceX stock and holds stakes valued at more than $10 billion in various customers, partners, and suppliers.
With quarterly revenue exceeding $80 billion and net income approaching $60 billion, Nvidia has plenty of unspent cash to invest. Traditionally, the company invests in stocks poised to grow and makes strategic investments.
Nvidia's investment in Intel was both strategic and financial, helping Intel survive hard times and generating $24.989 billion for the company. Interestingly, after investing in Intel, Nvidia has sold its 1.1 million Arm shares (worth $178.1 million last August). Without any doubts, Nvidia will continue developing Arm-based CPUs, though for now it does not own any Arm stock.
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The SpaceX investment — valued at $20.975 billion — seems entirely strategic at present, since SpaceX's xAI has committed to exclusively using Nvidia hardware in its AI data centers both on Earth and in orbit. Once SpaceX's stock regains its lost value, Nvidia may well earn on it, though it remains to be seen when this happens.
Other notable investments that Nvidia has made over the past year include Coherent, a major maker of lasers, optical materials, and semiconductors; Nokia, a telecommunications giant; and Synopsys, an electronic design automation (EDA) provider.
Coherent is expected to make Ultra-High-Power Continuous-Wave (UHP CW) lasers for Nvidia's next-generation data center platforms relying on co-packaged optical (CPO) interconnects, so Nvidia invested $2 billion in the company earlier this year. Since then, the stock has almost skyrocketed.
Something similar happened to the Nokia investment. Last October, the company announced plans to invest $1 billion in Nokia to accelerate AI-RAN innovation and lead the transition from 5G to 6G. By now, the shares that Nvidia owns are worth $2.2 billion.
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Synopsys has been aggressively adding artificial intelligence capabilities for its tools, so to support the company, Nvidia acquired $2 billion worth of Synopsys stock last December. Right now, the stake is valued at $2.15 billion, making it a profitable investment for the AI hardware giant.
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