Nvidia Doubles Down on AI Investments with Intel and CoreWeave as Key Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Source: Fool
- Portfolio Focus: As of March 31, Nvidia's portfolio is heavily weighted towards Intel and CoreWeave, which together account for 71.6%, indicating strong confidence in these AI-related companies, especially as demand for AI is expected to surge in the coming years, potentially enhancing investment returns.
- Intel Market Outlook: Intel's leadership in the server CPU market is crucial as the industry shifts towards autonomous AI systems; however, with its stock price soaring nearly 500% over the past year and a current forward P/E ratio of 151.5, investors should carefully assess its future growth potential amidst high valuations.
- CoreWeave Growth Potential: CoreWeave reported $2.1 billion in revenue for Q1, marking a 111.6% year-over-year increase, with its focus on AI infrastructure and partnerships with Microsoft and OpenAI providing strong growth momentum, despite challenges related to profitability.
- Customer Concentration Risk: CoreWeave faces significant customer concentration risk, with Microsoft accounting for 67% of its revenue, exposing the company to substantial risks if its relationship with this key client falters, although its $99.4 billion backlog indicates robust market demand.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 120.890
Low
20.00
Averages
39.30
High
52.00
Current: 120.890
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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