How One Company Turned a Strategic Weak Spot Into a Massive Opportunity
Sometimes the biggest opportunity starts with a weakness.
America has a supply-chain gap around graphite. Demand is rising. Dependence on foreign sources is still high. And one company appears to have seen the opening before most.
Now it's working to turn that weak spot into a much bigger story.
The market, meanwhile, still hasn't fully woken up.
And that's usually the part investors like best.
Why investors are paying attention:
- The company is built around a supply problem that suddenly matters more
- It's already been awarded federal funding as the U.S. pushes for domestic critical minerals
- The story is still developing as the headlines drum up noise around it
See the U.S. Asset Positioned to Close the Gap >
A Deep Dive Into NVIDIA’s Latest Portfolio Moves
Reported by Leo Miller. Date Posted: 5/19/2026.
Key Points
- NVIDIA has been making multi-billion-dollar deals left and right as the company looks to strengthen its AI supply chain
- However, several recent investments did not show up in its latest 13F filing
- See why this was the case and what SEC filings say about the company's position in CoreWeave versus Nebius
- Special Report: Elon Musk: This Could Turn $100 into $100,000
Over the past several months, semiconductor giant and the world’s most valuable company, NVIDIA (NASDAQ: NVDA), has not been shy about making equity investments.
The company has announced multi-billion-dollar stakes in several companies in 2026.
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Get the SpaceX infrastructure stock name and ticker hereHowever, its latest 13F filing reveals a few interesting wrinkles, including the omission of several stocks NVIDIA publicly said it had bought into.
The company also dramatically increased its position in a leading neo-cloud provider and purchased shares in a little-known biotech company.
These are the biggest takeaways from NVIDIA’s Q1 2026 13F filing, along with an explanation of these seemingly mysterious omissions.
Coherent, Lumentum, and Marvell: Why 1 Showed Up and 2 Didn’t
During Q1, NVIDIA announced $2 billion investments in three semiconductor stocks. However, only one appeared in its filing. That company is Coherent (NYSE: COHR), which makes optical transceivers and other optical networking components. As data center demand for optical networking has surged, so have Coherent shares. Over the last 12 months, Coherent stock is up 350%.
NVIDIA’s investment in Coherent comes as it looks to help the company expand production capacity and support the rollout of NVIDIA’s optical networking solutions. NVIDIA also made a “multibillion-dollar purchase commitment” for Coherent’s products.
However, NVIDIA also announced a very similar investment in Lumentum (NASDAQ: LITE) on the same day in early March. Interestingly, Lumentum did not show up on NVIDIA’s 13F. Looking at the regulatory filings related to these investments reveals why.
With Coherent, NVIDIA purchased the company’s common stock—the same type of stock that any investor can easily buy. By contrast, with Lumentum, NVIDIA bought “Series A Convertible Preferred Stock," which does not appear on the SEC’s List of Section 13F Securities. As a result, NVIDIA’s purchase was not reportable in its 13F. If NVIDIA converts these securities into common stock, they will appear in future 13Fs.
The same appears to be true for NVIDIA’s $2 billion investment in Marvell Technology (NASDAQ: MRVL), which also did not show up in its 13F. The bottom line is that these investments are very real, but the deal structures are keeping them off the 13F filing for now.
CoreWeave Gets Big-Time Injection of NVIDIA Capital, But What About Nebius?
Another intriguing move is the fact that NVIDIA greatly increased its holdings in neo-cloud provider CoreWeave (NASDAQ: CRWV). Overall, NVIDIA’s shares held in CoreWeave increased by 95% from 24.28 million to 47.21 million. As CoreWeave also appreciated, the dollar value of the position increased even more, by 110%.
At the end of Q1, NVIDIA’s investment in CoreWeave was worth $3.657 billion, making the stock its second-largest holding. The $2 billion common stock investment NVIDIA announced in January is reflected in its latest 13F.
On the other hand, NVIDIA’s 13F did not show an increase in its shares held in its other neo-cloud position, Nebius (NASDAQ: NBIS). According to the filing, NVIDIA’s investment in Nebius sat at nearly $123 million at the end of Q1, making it the stock’s second-smallest holding at 0.7%. However, NVIDIA also announced an additional $2 billion investment in Nebius in mid-March.
Once again, the regulatory filing shows why. Rather than buying Nebius’s common stock, NVIDIA purchased $2 billion worth of pre-funded warrants. Practically speaking, this is the same as buying common stock, as NVIDIA has already paid the $2 billion, which Nebius recorded as cash from financing. However, until NVIDIA exercises the warrants and converts them into common stock, they will not show up on NVIDIA’s 13F.
Thus, at first glance, the 13F appears to show NVIDIA giving preference to CoreWeave, investing $2 billion in the firm while leaving its Nebius position unchanged. However, a closer look shows that this is not the case. NVIDIA invested $2 billion in both companies in Q1, but only the CoreWeave investment is visible in its 13F at this point.
Intel, Synopsys, Nokia Hold Steady, NVIDIA Dips Toe Back Into Biotech
NVIDIA did not increase its shares held in Intel (NASDAQ: INTC), Synopsys (NASDAQ: SNPS), or Nokia (NYSE: NOK) in Q1. Intel continues to be its largest holding at 51.6% of the portfolio, Synopsys is third at 10.4%, and Nokia is fifth at 7.3%. Note that these percentages account only for the holdings on the 13F, excluding the investments in Lumentum, Marvell, and the additional allocation to Nebius.
NVIDIA also made a very small $10.4 million investment in Generate Biomedicines (NASDAQ: GENB). Generate places AI at the forefront of its drug discovery process. Its leading product candidate is GB-0895, intended to treat severe asthma. Notably, this isn’t the first time NVIDIA has invested in a biotech company. It held a position in Recursion Pharmaceuticals (NASDAQ: RXRX) for over a year but sold it in Q4 2025. Over the life of its reportable investment in Recursion, the position lost approximately half of its value.
Why OpenAI’s IPO Plans Could Be a Massive Win for Microsoft
Reported by Chris Markoch. Date Posted: 5/13/2026.
Key Points
- Microsoft’s OpenAI stake could now be worth roughly $228 billion following OpenAI’s latest funding round and restructuring.
- OpenAI’s long-term Azure commitment may provide Microsoft with a major recurring AI revenue stream through 2030.
- Investors may be undervaluing Microsoft stock by overlooking the embedded value of its OpenAI ownership stake.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
OpenAI is in the news for several reasons, most of them centered on its plans to go public. The company is pursuing an initial public offering (IPO) that could value it at around $1 trillion. That has prompted Elon Musk to take OpenAI to court on the grounds that the company, of which Musk was a co-founder, has betrayed its mission by moving from a nonprofit to a for-profit structure.
Lost in that noise is the news that OpenAI and Microsoft Corp. (NASDAQ: MSFT) have reframed their partnership. Microsoft will remain OpenAI’s primary partner, but OpenAI can now scale across multiple cloud platforms.
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Get the ticker now before the June S-1 closes the windowMicrosoft also retains a license to OpenAI’s models and products through 2032. However, that license is now non-exclusive as well. For its part, OpenAI has committed to purchasing $250 billion in Azure compute services, and revenue-share payments from OpenAI to Microsoft will continue through 2030, subject to a total cap.
With MSFT down over 15% in 2026 and investors questioning the company’s artificial intelligence (AI) infrastructure ambitions, it’s fair to wonder: What’s in it for Microsoft? The answer is not found in technology, but in a more boring place—Microsoft’s balance sheet.
A $13 Billion Bet That Keeps Paying Off
Microsoft invested approximately $13 billion in OpenAI between 2019 and 2023. Management initially targeted a $92 billion return on that investment.
As it turns out, that estimate was far too conservative. In October 2025, OpenAI completed its reorganization as a for-profit entity. In doing so, Microsoft’s economic interest in OpenAI was pegged at 26.79% on a fully diluted, as-converted basis.
The restructuring represented a clean accounting event for Microsoft. In the nine months ending March 31, 2026, Microsoft recorded $5.9 billion in net gains from its OpenAI investment—a sharp reversal from $2.7 billion in net losses during the same period a year earlier.
The losses reflected how Microsoft accounts for its OpenAI stake: under equity-method accounting, Microsoft recognizes its proportional share of OpenAI's actual operating results. Since OpenAI has been burning through cash at a significant rate, Microsoft was absorbing its share of those losses directly on its income statement.
The swing to a gain wasn't from OpenAI suddenly turning profitable—it came from a one-time event. When OpenAI restructured into a Public Benefit Corporation in October 2025, it triggered a dilution gain for Microsoft: Microsoft ended up owning a smaller percentage of OpenAI, but the implied valuation of the company rose much faster than ownership fell, allowing Microsoft to book the difference as income.
The Largest Private Funding Round in History
On Feb. 27, 2026, OpenAI raised $110 billion at a $730 billion pre-money valuation—the largest private funding round in history. A month later, it expanded that round to $122 billion, closing at a post-money valuation of $852 billion.
At that valuation, Microsoft's 26.79% stake is worth $228.3 billion, which is a 17.6x multiple on its $13 billion investment. No other large investor even comes close to that level of return. More importantly, after the lock-up period following an IPO, Microsoft could sell all or a portion of that equity without violating any obligations to OpenAI.
Critically, an IPO would not terminate the partnership. The commercial agreements, including the Azure commitment and IP licensing, run on their own contractual track through 2030 and 2032, respectively, independent of any change in OpenAI's public or private status.
How Microsoft Could Deploy the Proceeds
That leads to another question. Is Microsoft planning to deploy that cash? This is speculation, but it’s speculation worth considering.
To begin with, Microsoft doesn’t need the cash. However, it’s committed to an annualized AI capital expenditure (CapEx) run rate of about $190 billion. In the first half of fiscal 2026 alone, Microsoft spent more on CapEx than in all of fiscal 2025. Any large liquidity event would almost certainly flow toward accelerating this buildout, particularly given that demand is outrunning supply.
CFO Amy Hood has acknowledged the company expects to remain capacity constrained through 2026, with next quarter's CapEx alone projected to exceed $40 billion. A staged sell-down of OpenAI equity post-IPO (i.e., selling in tranches rather than all at once) would give Microsoft a market-friendly mechanism to fund that buildout without issuing debt or pressuring its own stock.
The Valuation Case for MSFT
More importantly for MSFT shareholders is what this accounting event may mean for the company's valuation. As of May 12, Microsoft is trading around $408, putting its market cap at $3.03 trillion. However, the stock is still well below its 52-week high of $555.45. That means Microsoft's $228 billion OpenAI stake represents about 8% of its entire market cap.
Put another way, investors are getting the core Microsoft business—Azure, Office 365, LinkedIn, Dynamics and GitHub—at a valuation near a multi-year low on operating earnings metrics, while the $228 billion OpenAI position effectively comes along at no incremental cost.
Meanwhile, OpenAI's Azure consumption is recognized as revenue within Microsoft's AI business line, which is now running at a $37 billion annual rate, up 123% year over year. Even if Microsoft never sells a single share of OpenAI, the $250 billion Azure commitment alone represents a locked-in revenue stream that will compound through the end of the decade.
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