Nvidia invested $3.8 billion in two AI stocks in Q1 2026, increasing its CoreWeave stake by 95% to $3.65 billion (9% ownership) and putting $2 billion into a Coherent photonics partnership. CoreWeave’s high leverage creates balance-sheet risk for Nvidia, while Coherent’s strong AI supply-chain role comes with elevated valuation multiples.
In the first quarter of 2026, Nvidia deployed $3.65 billion to raise its CoreWeave stake by 95% to a 9% ownership position and committed $2 billion to establish a strategic partnership with Coherent for photonics components critical to AI infrastructure.
CoreWeave’s elevated debt levels heighten balance-sheet risk for Nvidia, as the near doubling of its equity stake increases exposure to potential credit stresses and refinancing challenges in volatile market conditions.
Coherent’s role in supplying advanced photonics for AI accelerators positions Nvidia deeper in the semiconductor supply chain, but the company’s high valuation multiples necessitate strong execution and market growth to justify current price levels.
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