Nvidia Plans $1 Billion Investment in AI Startup Poolside, According to Reports
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Should l Buy NVDA?
Source: SeekingAlpha
Nvidia's Investment Plans: Nvidia is negotiating to invest $1 billion in AI startup Poolside, which specializes in foundation models for government and defense sectors.
Funding Round Details: Poolside aims to raise $2 billion at a pre-money valuation of $12 billion, with Nvidia potentially contributing $500 million initially and another $500 million contingent on fundraising success.
Previous Commitments: Poolside has already secured over $1 billion in commitments for this funding round and plans to use part of the funds to purchase Nvidia's Blackwell GB300 GPUs.
Lack of Comments: Both Nvidia and Poolside have not responded to requests for comments regarding the investment discussions.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 177.820
Low
200.00
Averages
264.97
High
352.00
Current: 177.820
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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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- Market Share Advantage: Nvidia holds a dominant 92% share in the data center GPU market, and with its leadership in AI and cloud computing, the company anticipates continued revenue growth, projecting first-quarter revenue of $78 billion, a 77% year-over-year increase, which will further enhance its competitive edge.
- Analyst Outlook: Tigress Financial analyst Ivan Feinseth reiterated a strong buy rating on Nvidia, raising the 12-month price target to $360, forecasting the company will generate $406 billion in revenue and $201 billion in operating profit over the next year, reflecting strong market confidence in its growth prospects.
- Investor Confidence Rebound: Despite concerns about an AI bubble shaking some investors, 90% of retail investors plan to maintain or increase their AI holdings, indicating long-term optimism for Nvidia, with the current stock price being relatively undervalued, presenting a buying opportunity for seasoned investors.
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- Profitability Surge: With a profit margin exceeding 50%, Nvidia is expected to become the most profitable company globally by year-end, surpassing Alphabet, showcasing its profitability and market leadership in a high-demand environment.
- Valuation Rebound Potential: Currently trading at a price-to-earnings ratio of about 22 times, significantly lower than the historical range of 40 to 50 times, if market sentiment improves, a return to a 45 times valuation could double the stock price, reflecting its reasonable valuation potential.
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- AI Investment Risks: Although Nvidia invested over $5 billion in CoreWeave, the company reported a net loss of $1.17 billion, raising doubts about its operational sustainability due to a heavy debt load.
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- Significant Performance Growth: Nvidia achieved record revenue of $68 billion in Q4 of fiscal 2026, representing a 73% year-over-year increase, with earnings per share (EPS) soaring to $1.76, up 98%, demonstrating the strong demand driven by AI and solidifying its market leadership.
- Market Share Advantage: Nvidia holds a dominant 92% share in the data center GPU market, and with its leadership in AI and cloud computing, the company anticipates continued revenue growth, projecting first-quarter revenue of $78 billion, a 77% year-over-year increase, which will further enhance its competitive edge.
- Analyst Outlook: Tigress Financial analyst Ivan Feinseth reiterated a strong buy rating on Nvidia, raising the 12-month price target to $360, forecasting the company will generate $406 billion in revenue and $201 billion in operating profit over the next year, reflecting strong market confidence in its growth prospects.
- Investor Confidence Rebound: Despite concerns about an AI bubble shaking some investors, 90% of retail investors plan to maintain or increase their AI holdings, indicating long-term optimism for Nvidia, with the current stock price being relatively undervalued, presenting a buying opportunity for seasoned investors.
See More
Nvidia Stock Positioned for Potential Doubling
- Strong Market Demand: Nvidia's GPUs have become the primary hardware for training AI models, with revenue projected to grow by 70% to over $360 billion by fiscal 2027, indicating robust market demand and future growth potential in the AI sector.
- Profitability Surge: With a profit margin exceeding 50%, Nvidia is expected to become the most profitable company globally by year-end, surpassing Alphabet, showcasing its profitability and market leadership in a high-demand environment.
- Valuation Rebound Potential: Currently trading at a price-to-earnings ratio of about 22 times, significantly lower than the historical range of 40 to 50 times, if market sentiment improves, a return to a 45 times valuation could double the stock price, reflecting its reasonable valuation potential.
- Long-term Investment Confidence: Despite cautious market sentiment regarding the AI sector, hyperscalers are likely to continue investing in infrastructure, believing the risk of underinvestment is greater, suggesting that by 2026, market sentiment may recover, further driving Nvidia's stock price upward.
See More
Billionaire Investor Quarterly Filing Insights
- Portfolio Adjustment: Billionaire Philippe Laffont of Coatue Management completely sold 6,724,615 shares of CoreWeave in Q4, totaling over $920 million, indicating concerns about the company's future profitability and reflecting a strategic shift in AI investments.
- Profitability Risks: Despite CoreWeave's sales doubling to $5.13 billion in 2025, its net loss surged to $1.17 billion, highlighting the potential impact of its debt-heavy balance sheet on future financing capabilities, necessitating investor scrutiny of its operational sustainability.
- Netflix Stake Increase: Laffont increased his stake in Netflix by 467,400 shares, a 76% rise, pushing the market value of his holdings above $1 billion, demonstrating confidence in the company's leadership in the streaming market and its growth potential.
- Market Reaction: Following Netflix's stock decline post-acquisition proposal for Warner Bros. Discovery, Laffont's purchase may reflect a strategic assessment of market reactions, especially after Paramount submitted a superior bid, further solidifying Netflix's market position.
See More
Software Stocks Decline, Nvidia CEO Rebuts Market Reaction
- Illogical Market Reaction: Nvidia CEO Jensen Huang argues that the market's reaction to AI is irrational, stating that many software companies are under pressure due to the belief that AI will replace them, which he describes as 'the most illogical thing in the world.'
- Microsoft's Cloud Market Share Growth: Microsoft increased its share of cloud infrastructure and platform services spending from 20% in September to 21% in December, indicating ongoing growth in its cloud computing market share driven by enhanced compute capacity and demand for Foundry AI services.
- Strong Financial Performance for Datadog: Datadog reported a 29% revenue increase to $953 million in Q4, with remaining performance obligations rising 52% to $3.4 billion, suggesting robust future revenue growth potential, although non-GAAP net income grew only 20% due to heavy R&D spending.
- AI Boosting Demand for Observability Software: Datadog was ranked as a leader in AI for IT operations by Forrester Research, and as cloud adoption and AI proliferate, its market share in core observability is expected to continue growing, making it a top priority for many IT departments.
See More
Billionaire Sells CoreWeave Shares Amid AI Concerns
- Massive Sell-off: Billionaire Philippe Laffont sold over 6.7 million shares of CoreWeave in Q4, totaling more than $920 million, indicating concerns about the company's future profitability despite sales doubling to $5.13 billion in 2025.
- AI Investment Risks: Although Nvidia invested over $5 billion in CoreWeave, the company reported a net loss of $1.17 billion, raising doubts about its operational sustainability due to a heavy debt load.
- Netflix Stake Increase: Laffont increased his stake in Netflix by 76% in Q4, adding 467,400 shares to make it a $1 billion holding, reflecting confidence in Netflix's leadership in the streaming market and its content creation capabilities.
- Market Reaction: Laffont's purchase of Netflix is seen as a positive signal for the company's growth potential, especially amid concerns over its proposed acquisition of Warner Bros. Discovery in a highly competitive streaming industry.
See More
Micron and SanDisk Show Strong Memory Market Performance
- Micron's Revenue Surge: Micron's DRAM revenue reached $10.8 billion in Q1 2026, marking a 69% year-over-year and 20% quarter-over-quarter increase, indicating strong demand and growth potential in the memory market, which is expected to further solidify its market leadership.
- SanDisk's Revenue Growth: SanDisk reported a 61% year-over-year and 31% quarter-over-quarter revenue increase in Q2 2026, with the CEO noting that customers are proactively seeking long-term commitments, reflecting its pricing power and advantages from supply-demand imbalances in the NAND memory market.
- High Bandwidth Memory Outlook: Micron's high bandwidth memory (HBM) is completely sold out, with expectations for the total addressable market to reach $100 billion by 2028, growing at a compound annual growth rate of approximately 40%, which strongly supports its competitiveness in the AI chip market.
- Low Market Valuation: Despite Micron's optimistic growth prospects, its stock trades at a low price-to-earnings ratio of 11.5, reflecting market concerns about its cyclical nature; however, the current upward cycle in memory may persist, presenting investment opportunities.
See More
