Nvidia (NASDAQ:NVDA | NVDA Price Prediction) just seems to keep the deals and partnerships coming. Undoubtedly, the GPU king has plenty of cash to spend and, perhaps most importantly, efficiencies to unlock as it opts to team up to tackle some of the world’s greatest challenges. At the end of the day, more “circular” dealmaking may be a growing concern for some, but to prevent overlapping efforts (and hefty spend), collaboration only makes sense.
Of course, excessive investments could elevate the risk of an eventual collapse (think a house of cards scenario) if the AI bubble burst scenario ends up playing out, perhaps due to a lack of monetization progress or something that’s not yet on the radars of the market. Indeed, sometimes, it’s the off-the-radar risks that can deliver the biggest hit.
Nvidia isn’t slowing down when it comes to deal-making
In any case, Nvidia’s latest big deal saw Jensen Huang’s empire make a big $2 billion bet on CoreWeave (NASDAQ:CRWV) with a $2 billion stake.
This latest deal comes just weeks after Nvidia spent a poured a couple of billion on a range of other deals, including the $1 billion Eli Lilly (NYSE:LLY) co-innovation collab as well as a $4.9 billion bet on Intel (NASDAQ:INTC), and, of course, let’s not forget about the big Groq deal for assets and talent for $20 billion. Undoubtedly, Jensen Huang has been making some impressive, high-return bets across the AI industry in recent years.
Could he have done even better by taking bigger swings on earlier investments, such as Elon Musk’s xAI?
Most definitely. But the stakes and valuation have risen notably in the past couple of years. And if the so-called “AI honeymoon” is over or nearing its end, as Deutsche Bank believes, perhaps such investments might not be able to excite Nvidia investors as much as they give them pause. Either way, time will tell how all these bets fare.
On the plus side, I do think Huang and his team have an ear to the valuation.
Nvidia has been buying the dip in some quality AI innovators
Of late, we’ve witnessed some prices implode quite viciously. Could it be that there are bargains forming within the AI scene? And if there’s more pain ahead for the AI trade, should investors expect the pace of deal-making to pick up for Nvidia and other top players in the AI race?
I’d argue that more near-term pain (perhaps in 2026) could be a net positive for Nvidia as well as the Magnificent Seven, as they’ll have more opportunity to feast on the most promising of AI startups, perhaps at a big, fat discount on the way down.
Nvidia’s bet on Intel came at a time when the firm was in a rather rough spot. Arguably, shares of the rival chipmaker overswung to the downside and were a great bargain. Though Intel’s latest parabolic move may end in a correction, I do think that Nvidia got in (the back half of last year) at a price that is very much reasonable. The major upside from the Intel bet is the potential recovery acceleration as Nvidia looks to lend a helping hand.
Either way, it’s a smart, value-conscious bet, at least relatively speaking.
As for the CoreWeave investment, I think it’s very well-timed, given shares of the data center play have been on the retreat in recent quarters. The stock already took a nearly 50% haircut, and that might be enough to build value for Nvidia as it looks to take advantage of dips across the AI waters.
With Deutsche Bank recently upgrading shares over the year-ahead setup, I think Jensen Huang is more of a value-minded investor than many would give him credit for. He’s buying premier AI growers on weakness, and if $140 per-share for CoreWeave stock is in the cards, as Deutsche Bank suggests, perhaps investors will start rewarding Nvidia for its smart moves again.
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