Nvidia's $21 Billion Bet on SpaceX May Cloud Earnings

Nvidia's recent 13F holdings report revealed that it has invested $21 billion in SpaceX, making it one of its largest positions. The tech company also holds a significant stake in Intel, valued at close to $30 billion.

The investment in SpaceX may introduce volatility into Nvidia's earnings due to potential investment gains and losses. In its most recent quarter, Nvidia reported other income totaling $15.9 billion, primarily attributable to unrealized gains and losses on investments.

Nvidia has invested in several growth stocks, including CoreWeave and Nebius Group, which trade at high valuations and are closely tied to the ongoing tech investments in artificial intelligence (AI). These volatile investments can swing wildly due to market- and industry-specific developments.