To The Moon

NVIDIA’s Investment Universe: Can NVTS and CRWV Soar Even Higher?

As of 05:59 PM NZST on Saturday, May 24, 2025, NVIDIA remains a focal point in the tech investment landscape. The company recently increased its stake in CoreWeave from 17.9 million to 24.2 million shares in Q1, a move that saw CoreWeave’s stock triple in value over the past month. Meanwhile, Navitas Semiconductor skyrocketed 164% on Thursday after announcing a partnership with NVIDIA. However, NVIDIA’s own stock has plateaued around $130, with earnings expected next week. The post raises a critical question: with NVIDIA’s momentum seemingly slowing, is it time to pivot to smaller players like CoreWeave and Navitas? Let’s dive into this dynamic ecosystem and explore what it means for investors.

1. NVIDIA’s Strategic Play: A Vision for the Future

NVIDIA’s investment in CoreWeave reflects its broader strategy of building an ecosystem around AI and high-performance computing (HPC). CoreWeave, a cloud computing provider specializing in AI workloads, aligns perfectly with NVIDIA’s GPU-driven data center business. The tripling of CoreWeave’s stock price following NVIDIA’s disclosure signals strong market confidence in this synergy. Similarly, the partnership with Navitas Semiconductor, a leader in gallium nitride (GaN) technology, positions NVIDIA to benefit from the growing demand for efficient power management in data centers and electric vehicles.

From my perspective, NVIDIA’s moves are not just about financial returns—they’re about shaping the future of tech. By investing in companies like CoreWeave and Navitas, NVIDIA is creating a network of innovation that amplifies its own growth while fostering the next generation of tech leaders. This interconnected approach makes NVIDIA a linchpin in the AI and semiconductor revolution.

2. CoreWeave and Navitas: Rising Stars with Risks

The meteoric rises of CoreWeave and Navitas are exciting, but they come with caveats that investors should consider.

• CoreWeave: The company’s focus on AI computing taps into the explosive demand for GPU-intensive workloads, especially for training and inference in AI models. NVIDIA’s increased stake provides both capital and credibility, fueling CoreWeave’s growth. However, a stock tripling in a month raises red flags about overvaluation. If the AI hype cools or if larger competitors like AWS or Google Cloud offer cheaper alternatives, CoreWeave could face a correction. Still, its niche in HPC makes it a compelling long-term bet for risk-tolerant investors.

• Navitas Semiconductor: The учрежд164% surge following the NVIDIA partnership underscores the market’s enthusiasm for GaN technology, which offers superior efficiency for power delivery in data centers and consumer electronics. This collaboration could position Navitas as a key supplier in NVIDIA’s ecosystem, especially as data centers demand more energy-efficient solutions. But such a sharp rally often reflects speculative fervor rather than sustainable growth. Navitas must prove it can scale production and maintain profitability in a competitive semiconductor market prone to cyclical downturns.

In my view, both companies exemplify the ripple effect of NVIDIA’s influence, but their rapid ascents suggest a need for caution. Investors should weigh the potential for further upside against the risk of volatility.

3. NVIDIA’s Plateau: A Pause or a Peak?

NVIDIA’s stock stalling around $130 has sparked concerns about whether its growth story is losing steam. After a remarkable run driven by AI demand, the company faces high expectations as it approaches its earnings report next week. A slowdown in momentum could stem from broader market dynamics, such as fears of a tech sector correction or uncertainty around Federal Reserve policies. However, I see this plateau as a healthy consolidation rather than a cause for alarm.

NVIDIA’s fundamentals remain robust: its dominance in AI, gaming, and autonomous driving, coupled with a booming data center segment, positions it for sustained growth. The stock’s forward P/E ratio has likely moderated after recent gains, making it more attractive than it was at its peak. If the upcoming earnings reveal strong revenue growth—particularly in data centers—and optimistic guidance, NVIDIA could break out of its current range and resume its upward trajectory.

4. Investment Dilemma: NVIDIA, CoreWeave, or Navitas?

The post poses a choice: should investors pivot to CoreWeave or Navitas, or stick with NVIDIA? Here’s my take:

• CoreWeave: A high-growth option for those comfortable with risk. Its alignment with the AI megatrend is undeniable, but the tripling of its stock price suggests a potential bubble. I’d recommend waiting for a pullback before entering, as the current valuation may not fully reflect competitive risks.

• Navitas: A speculative play with significant upside if it capitalizes on the NVIDIA partnership. GaN technology is a game-changer, but Navitas needs to demonstrate operational scale and consistent earnings. The 164% surge feels overheated, so I’d approach with caution, perhaps accumulating on dips.

• NVIDIA: The safest bet for most investors. Despite its recent stall, NVIDIA’s diversified revenue streams and leadership in AI make it a cornerstone holding. The upcoming earnings could serve as a catalyst to reignite momentum, making it a compelling buy at current levels.

From my perspective, NVIDIA offers the best balance of stability and growth, while CoreWeave and Navitas are higher-risk, higher-reward plays that require careful timing.

5. Broader Market Implications

This situation also sheds light on the S&P 500’s resilience. NVIDIA is a major component of the index, and its performance influences broader market sentiment. If NVIDIA’s earnings disappoint, it could weigh on tech-heavy indices, but the S&P 500’s diversity—spanning sectors like healthcare and consumer goods—should provide a buffer. Moreover, the ripple effects of NVIDIA’s investments in CoreWeave and Navitas highlight the interconnectedness of the tech sector, where innovation in one area (e.g., AI computing) drives growth in others (e.g., semiconductors).

6. Investor Strategy: Balancing Optimism and Prudence

Here’s how I’d approach this investment landscape:

• Short-Term Focus: Watch NVIDIA’s earnings closely. If data center growth exceeds expectations, consider adding to positions. For CoreWeave and Navitas, monitor for signs of stabilization after their recent rallies.

• Long-Term Perspective: NVIDIA remains a core holding for its exposure to secular growth trends like AI and autonomous driving. CoreWeave and Navitas can complement a portfolio but should be smaller allocations due to their volatility.

• Risk Management: Tech stocks are sensitive to macroeconomic shifts, such as interest rate hikes. Diversify across sectors and set stop-loss levels to protect against unexpected downturns.

Conclusion: A Galaxy of Opportunity

NVIDIA’s “investment galaxy” is a testament to its role as a tech titan, fostering growth across its ecosystem. CoreWeave and Navitas represent the promise of innovation, but their recent surges call for caution. NVIDIA itself, despite its current pause, remains a powerhouse with strong fundamentals and a clear path to future gains. Rather than signaling the end of NVIDIA’s run, this moment offers investors a chance to reassess and capitalize on the broader ecosystem’s potential. Whether you lean toward the stability of NVIDIA or the high-flying prospects of CoreWeave and Navitas, the key is to balance enthusiasm with discipline, ensuring you’re positioned for the next phase of this tech-driven ascent.