This AI Stock is Now Nvidia's Biggest Holding. Is it a Buy?

By Adria Cimino – Mar 5, 2026 at 6:10PM ESTKey PointsNvidia recently invested $5 billion in this AI company.As AI chip leader, Nvidia is in the right spot to identify other potential winners.Nvidia (NVDA +0.10%) is the name most of us think of when we think of artificial intelligence (AI). The company dominates the AI chip market with top products such as its Blackwell and Blackwell Ultra platforms, and these have led to explosive earnings growth. But this tech giant isn't just a major player in the AI landscape; it's also an investor in other AI companies. Nvidia is ideally positioned to do this as it has visibility on what's happening in the AI market and what's to come. Nvidia recently reported its latest stock trades, those from the fourth quarter of last year, and as part of that, we now know the name of the company's biggest holding. Is it a buy? Let's find out. Image source: Getty Images. A $5 billion investment Which stock am I talking about? It actually could be considered a competitor of Nvidia since this company, too, offers AI chips. I'm referring to Intel (INTC +0.78%). Nvidia made a $5 billion investment in Intel's common stock, picking up 214,776,632 shares. The company originally announced its intention to do this back in September, but launched the purchase in the fourth quarter after receiving regulatory approvals. Now, Intel is the biggest holding in Nvidia's $13.1 billion investment portfolio, and it's clear that this move could be a very good one for both companies. As part of the deal, the companies will work to connect their architectures to leverage the strengths of each. For example, Intel will build custom central processing units (CPUs) for data centers to integrate with Nvidia's platforms. And Intel will include Nvidia's RTX graphics processing unit (GPU) chiplets in its systems for personal computers. Both companies may benefit So, to put it simply, Nvidia will benefit from Intel's CPU expertise and position in the PC market, while Intel will get a boost in the data center market. But does this make Intel a buy? Intel, a giant in the CPU market, has struggled to gain ground in AI. The company fell behind early on, making it very difficult to catch up, though it continues to advance here. It's announced a new GPU, for the moment called "Crescent Island," and it's been designed for the potentially high-growth area of inference. Intel aims to begin customer sampling in the second half of this year. ExpandNASDAQ: INTCIntelToday's Change(0.78%) $0.35Current Price$45.94Key Data PointsMarket Cap$228BDay's Range$44.71 - $46.4752wk Range$17.66 - $54.60Volume2.7MAvg Vol102MGross Margin35.24% Intel stock has climbed quite a bit in recent times -- soaring nearly 80% in six months -- as investors bet on this recovery story. Though I wouldn't expect Intel to rival Nvidia in the AI market, the company still could recover and grow in the years to come. But considering the recent run-up in the stock, I would sit on the sidelines for now and watch for more progress before buying.Read NextMar 5, 2026 •By Jack DelaneyIntel Stock Dropped by More Than 6% in February. Here's What Happened.Mar 4, 2026 •By Billy DubersteinWhy Intel Rallied TodayMar 3, 2026 •By Keith NoonanWhy Intel Stock Is Sinking TodayMar 3, 2026 •By Sean WilliamsNvidia Dumped Its Stakes in Arm Holdings and Applied Digital, and Has Seen Its Newest Investment Double in 2 MonthsFeb 27, 2026 •By Harsh ChauhanIs Intel Stock Going to $100?Feb 24, 2026 •By Bram BerkowitzNvidia Just Sold Its Stake in Applied Digital and Arm Holdings and Piled Into a New Artificial Intelligence GPU Player Up Over 7,200% Since Its IPOAbout the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedIntelNASDAQ: INTC$45.94(+0.78%)+$0.36NvidiaNASDAQ: NVDA$183.23(+0.10%)+$0.19*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.