These 2 Nvidia-Backed Stocks Look Like Genius Investments
Nvidia (NASDAQ: NVDA) isn't just a top artificial intelligence (AI) stock to own; it's also an investor in other AI companies itself. It doesn't have a very large investment portfolio, so when it decides to take a position in a company, investors had better pay attention. There's only one reason a company like Nvidia would invest in another: Nvidia believes the investment will result in a greater return on capital than if it had invested it in itself. That's a major vote of confidence, so using Nvidia's holdings as a source for investment ideas is a smart strategy.
Two companies Nvidia is a major shareholder of are CoreWeave (NASDAQ: CRWV) and Nebius (NASDAQ: NBIS). These companies operate in a similar industry, and both look like they could be great investments if they can find their way to profitability.
Image source: Getty Images.
Source Fool.com
