NVIDIA Just Made Another Big Bet—Are You Still Paying Attention?

Don’t look now, but Nvidia (NASDAQ:NVDA | NVDA Price Prediction) made yet another remarkable AI investment, with a $2 billion stake in Marvell Technology (NASDAQ:MRVL). Undoubtedly, investing in increments of $2 billion seems to be the way to go for Jensen Huang and Nvidia of late. And while the latest deal is remarkable, odds are that it flew under the radar of most investors, many of whom are a bit focused on the market rebound and the potential for the war in Iran to end (hopefully) sooner rather than later.

The pace of deal-making has not slowed down, and, arguably, Nvidia might be wise to keep up its investment cadence as valuations across the board, especially in the tech sector, get marked down. In any case, Nvidia is poised to be an absolute cash cow and reinvesting in areas across the AI scene, I think, might offer the “growthiest” bang for the buck despite adding more to the circular web of deals. As we move ahead into the second quarter, don’t be too surprised if the $2 billion bets keep on coming.

Another deal? Why it’s still worth paying attention

While they might not move the needle or act as any sort of surprise for investors anymore, I still think that the moves the titan is making are still worth keeping tabs on.

With every new deal, the bears are sure to find one more reason to be even more bearish, while the bulls might have little, if any, reason to grow more bullish, given that the trend of rapid-fire deal-making is already an expectation at this point. In any case, what’s most interesting, at least in my humble opinion, are the corners of the AI scene where Nvidia is putting its money to work.

To close off 2025, Nvidia placed a fairly sizeable bet on inference chips. And this year, more of the investment seems focused on the plumbing over at the local AI data center. Undoubtedly, this is where the hurdles and bottlenecks may need to be addressed before the AI boom can really move markets, and perhaps more importantly, corporate earnings.

Nvidia is adding to its moat, one $2 billion investment at a time

Whether we’re talking about $2 billion bets a piece in Coherent (NASDAQ:COHR) and Lumentum (NASDAQ:LITE) to give photonics a jolt as so-called “AI Factories” (think next-generation AI data centers) look to move beyond copper cables, or the latest Marvell deal, which is another forward-thinking networking play, it’s clear Nvidia has set its sights on getting the infrastructure where it needs to be so that the AI boom can be all that it can be in the face of numerous constraints.

From energy to plumbing and everything in between, I’d expect Nvidia to continue spreading the wealth across a wide range of companies that are helping drive innovation within the data center. With Nvidia’s NVLink Fusion expanding its reach to encompass Marvell’s custom silicon, it’s clear that taking on more of a collaborative approach might be key to growth as the AI chip scene grows a bit more crowded.

Any way you look at it, Nvidia’s deal-making might be buying the firm more than a stake in a fast-rising player in the AI scene; it may also be spending its way to budding partnerships. Indeed, perhaps there’s more than the stake that Nvidia has to gain as it puts money to work, not just in great firms but in building relationships with the talent who are hard at work to move the AI revolution ahead.

Nvidia’s investment spree might be the optimal move

With the “Jensen premium” already slapped onto shares of Marvell (shares spiked around 20% this week) after the latest Nvidia investment, it seems like the opportunity to get a good deal has come and gone, with shares going for closer to 35 times trailing price-to-earnings (P/E).

In any case, I think it’s time to think of Nvidia as more than a GPU firm; it’s quickly becoming a more diversified AI hardware play with every deal it makes. And the latest Marvell deal, in my view, is just another move that adds to the $4.3 trillion titan’s moat, as it looks to gear up to win an agent-driven inference boom. In any case, the Vera Rubin boom is upon us and, with that, will come a boatload of cash, which, I think, is best spent on more AI bets.