Nvidia (NASDAQ:NVDA) just made another bold move in its AI playbook, revealing a 3% stake in Applied Digital (NASDAQ:APLD)a company building next-gen data centers and cloud infrastructure for high-performance computing and AI. According to a fresh SEC filing, Nvidia owns 7.72 million Applied Digital shares, valued at $63.66 million as of September 30. Applied Digital’s stock jumped over 4% in after-hours trading on the news, while Nvidia shares dipped slightly. Why the buzz? This isn’t just another investment; it’s Nvidia flexing its muscles in the AI ecosystem, doubling down on partnerships that integrate its cutting-edge chips into the AI infrastructure of tomorrow.
This investment follows a $160 million funding round for Applied Digital earlier this year, where Nvidia joined heavy hitters like Related Companies to inject fresh capital into the business. Applied Digital’s CEO, Wes Cummins, laid it out plainly: the company is unique because it combines AI cloud operations with top-tier data center builds, and that’s exactly what Nvidia wants. It’s part of a bigger trendNvidia is spreading its chips and dollars across the AI map, backing players like CoreWeave and Sakana AI to ensure it stays at the center of this booming industry. With a 67% year-over-year revenue jump and plans for massive growth in North Dakota and beyond, Applied Digital is clearly on Nvidia’s wavelength.
This move also sets the stage for Nvidia’s upcoming Q3 earnings report on November 20. As the AI boom rolls on, Nvidia isn’t just selling hardwareit’s strategically investing in the companies building the infrastructure that will drive AI innovation for years to come. For investors, this isn’t just about today’s numbers; it’s a front-row seat to the evolution of the AI industry, where Nvidia is making sure it’s not just part of the storyit’s writing it
This article first appeared on GuruFocus.
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