Nvidia's $21 Billion SpaceX Bet: A Volatility Risk for the Tech Giant

Nvidia's recent 13F holdings report revealed its largest investments, with Space Exploration Technologies Corp (SpaceX) holding the second spot at $21 billion as of June. This means that Nvidia investors have indirect exposure to SpaceX through their investment in Nvidia.

However, having such a large position in a volatile stock like 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 due to unrealized gains and losses on investments.

The tech company notes that its other income was lower than its operating profit of $53.5 billion, but still gave its bottom line a boost of about 30%. With SpaceX stock struggling after June, Nvidia may end up incurring a loss from its investments when it reports its next round of earnings.