Nvidia's Top AI Stock Holdings: A Closer Look

Nvidia, a leading artificial intelligence (AI) company, has invested heavily in three AI stocks that make up almost 88% of its portfolio. The largest holding is SpaceX, which accounts for 33.1% of Nvidia's portfolio and is valued at nearly $2 trillion. SpaceX's CEO, Elon Musk, believes that AI will account for the majority of the company's value within five years.

SpaceX's AI revenue grew by 247.5% year-over-year in its second quarter to $2.6 billion, while its total revenue reached $7.8 billion, up 92%. However, the market has already factored in SpaceX's success in its share price, and investors are advised to wait for a better entry point.

CoreWeave is another AI stock in Nvidia's portfolio, accounting for 7.4% of its holdings. The company recently posted excellent second-quarter results, with revenue growing by 112.5% year-over-year to $2.6 billion. CoreWeave remains unprofitable but has a significant cloud backlog and a reasonable price-to-sales ratio.

Intel is Nvidia's largest holding in the CPU market, accounting for 47.3% of its portfolio. Intel posted solid results in its second quarter, with revenue increasing by 25% year-over-year to $16.1 billion. However, Intel seems overvalued and investors are advised to wait for a pullback.