Artificial Intelligence (AI) Titan Nvidia Has Scored a $4 Billion “Profit” in an Unexpected Way
From Nasdaq: 2025-06-26 03:51:00
- Artificial intelligence (AI) has been a hot trend on Wall Street, with the potential to add $15.7 trillion to the global economy by the end of the decade, according to analysts at PwC.
- Nvidia (NASDAQ: NVDA) has seen significant success in the AI revolution, with its Hopper and Blackwell GPUs leading the way in AI-accelerated data centers.
- Nvidia’s ability to charge a premium for its AI hardware, along with its commitment to innovation and software platform CUDA, has helped boost sales by 383% and adjusted net income to $74.3 billion.
- Nvidia’s $4 billion "windfall" came from its investment in AI-data center infrastructure company CoreWeave, which went public and saw Nvidia’s stake grow to close to $4.44 billion.
- While Nvidia has benefited from its investment in CoreWeave, there are concerns about the company’s sustainability and valuation, prompting some to question if Nvidia is playing with fire.
- Investors are advised to consider the risks associated with CoreWeave and evaluate whether locking in gains at current levels would be a prudent move.
- The Motley Fool Stock Advisor team has identified 10 best stocks to buy now, excluding Nvidia, that could potentially offer significant returns in the future.
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