Nvidia’s Quiet AI Bet: This Stock Soared 120% in 5 Months—Should You Jump In Too?

Nvidia just upped its stake in a red-hot AI play that's been crushing it—120% gains in five months flat.

Why the stealth move?

Nvidia isn’t just betting on silicon—it’s backing the brains. This stock’s rally mirrors the kind of momentum that makes traditional finance guys sweat through their suits. You know, the ones who still think AI is a 'bubble'.

Timing the next wave

Five months. 120%. Those numbers don’t lie—they scream. This isn’t luck; it’s a calculated play in a sector eating the world. While Wall Street debates P/E ratios, the real action is in algorithms, not balance sheets.

So—should you follow?

If you’re waiting for a formal invitation, you’re already late. But then again, nothing makes a finance bro more uncomfortable than an asset that doesn’t care about his opinion.

Image source: Getty Images.

The AI stock Nvidia is buying

So, first let's consider Nvidia's operation. The company added to its position in(CRWV 7.23%), a cloud company that offers high-powered compute to customers building or operating AI platforms.

In the second quarter, Nvidia increased its CoreWeave position by about 0.4% to 24,277,573 shares for a market value of more than $3.9 billion. Nvidia initially purchased shares in the first quarter. (CoreWeave launched its initial public offering in March.)

This recent MOVE lifts CoreWeave to a weighting of more than 91% of Nvidia's portfolio from 78% in the previous quarter.

It's not surprising that Nvidia likes CoreWeave as the two companies, in a way, work hand-in-hand. Nvidia designs the world's top performing graphics processing units (GPUs), and CoreWeave makes them readily available to customers. CoreWeave has a fleet of more than 250,000 Nvidia GPUs, and customers may rent access to them by the hour or over the long term across about 32 data centers.

CoreWeave was the first to make Nvidia's Blackwell architecture and chip generally available earlier this year, and in recent weeks it was the first to make the update -- Blackwell Ultra -- available too. So customers know they can immediately get in on Nvidia's latest chips if they go to CoreWeave.

Revenue that's tripled

This helped revenue more than triple to $1.2 billion in the second quarter, and the company increased its forecast for full-year revenue by $250 million to the range of $5.15 billion and $5.35 billion. Of course, this high growth also involves a great deal of investment from CoreWeave -- the company predicts at least $2.9 billion in capital spending in the third quarter. And, considering this, the company isn't yet profitable, but this isn't surprising at this stage of the growth story.

CoreWeave has planned an acquisition of Core Scientific to gain ownership of infrastructure, and I see this as a strong move for two reasons. First, it's structured as an all-stock transaction so won't add to debt, and second, this will reduce lease liability overhead by more than $10 billion. So, over the long run, this move could favor lower costs and earnings growth for the company.

So, now, let's return to our question: Should you follow Nvidia into CoreWeave? It's important to remember that CoreWeave does carry some risk. The company isn't yet profitable, as mentioned, and it does face competition from big cloud service providers such as's Amazon Web Services and's Google Cloud, though it does differentiate itself with services purposely designed for AI. Still, these factors could weigh on growth and the stock price, meaning, if you're a cautious investor, CoreWeave may not be the best choice for you right now.

That said, if you're an aggressive investor looking to get in on a high-potential AI stock for a good price, you may want to follow Nvidia and buy CoreWeave shares. Though the stock has soared in the triple digits from its IPO, in recent weeks, it's dipped about 50% from its high. This offers investors a reasonable entry point.

And the points I talked about above, including the confidence of AI bellwether Nvidia, are reasons to be optimistic about CoreWeave's potential to deliver a win over the long term.