Nvidia (NVDA +1.67%) is at the center of the artificial intelligence (AI) revolution, and the company is trying to secure its future in the industry. One way it is doing so is through heavy R&D investments. Another is by investing in other promising AI-focused companies. Two of them, Intel (INTC +7.62%) and CoreWeave (CRWV +2.66%), accounted for about 71.6% of its portfolio as of March 31. Given that Nvidia is bullish on these stocks, should investors also get in on the action?
Image source: The Motley Fool.
1. Intel: 51.6% of the portfolio
Intel is one of the leaders in the server CPU (Central Processing Unit) market, which will become increasingly important as we shift toward agentic AI, or autonomous AI systems that can plan and execute tasks, rather than just respond to prompts. CPUs are critical in orchestrating AI agents. Nvidia's CEO, Jensen Huang, predicted that we could eventually have billions of agents.
Maybe that sounds optimistic, but it seems at least plausible that agentic AI will take off in the next few years, leading to growing demand for CPUs, which is great news for Intel. But is the stock a buy? It's worth noting that the forward-looking market has already responded. Intel has skyrocketed by almost 500% over the past 12 months. The company's shares look expensive, trading at a whopping 151.5x forward earnings, versus the average of 24.4x for information technology stocks.
NASDAQ: INTC
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Meanwhile, Intel's financial results aren't as strong as we might expect for a company trading at such levels. In the first quarter, the semiconductor leader's revenue increased by just 7% year over year to $13.6 billion. The company performed much better on the bottom line. Its adjusted earnings per share soared to $0.29, up 123% compared to the year-ago period. But it's worth noting that Intel has lost ground to its main competitor, Advanced Micro Devices, in the server CPU market, partly due to manufacturing issues.
Intel has tried to address these problems, and the company could see much improved top-line growth as it seeks to capitalize on agentic AI. Even so, the stock has soared too much, too fast, in my view, and it could contract over the next five years from its current levels. Interested investors should wait for a pullback.
2. CoreWeave: 20% of the portfolio
CoreWeave is an interesting player in the AI industry. Through a network of data centers equipped with high-performance hardware and software -- including GPUs, CPUs, networking, and storage infrastructure -- CoreWeave allows corporations to train and deploy AI models. CoreWeave's laser focus on AI and its partnerships with leading AI players, including Microsoft and OpenAI, have helped it deliver a rapidly growing top line. In the first quarter, CoreWeave's revenue came in at $2.1 billion, up about 111.6% year over year.
The tailwind may not be over. As AI infrastructure spending grows through the end of the decade (and perhaps beyond), CoreWeave is well-positioned to benefit. However, there are significant risks. Notably, CoreWeave isn't profitable. Operating expenses grew even faster than revenue in the first quarter. That resulted in squeezed margins and an even worse net loss.
NASDAQ: CRWV
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That's not too surprising. CoreWeave has to spend small fortunes building, equipping, and maintaining its data centers. While the company could eventually achieve profitability if it can sustain strong demand for its services over the next five years or so, if that doesn't happen, net losses will worsen, margins will drop, and the stock might plummet. One argument in its favor is the company's backlog, which was $99.4 billion as of the end of the first quarter, growing about 49% sequentially.
But another potential obstacle CoreWeave faces is significant customer concentration. As of the end of 2025, its biggest client, Microsoft, accounted for 67% of its revenue. That exposes CoreWeave to substantial risks if its relationship with this customer runs into issues. Here's the verdict: CoreWeave is a highly promising stock with massive upside potential, but the downside risk is huge as well. Invest accordingly.
