Nvidia Had Another Helping of Nebius Stock. Should You Follow Jensen Huang’s Lead?

Quick Read

• Nvidia (NVDA), Coherent (COHR), and Lumentum (LITE): Nvidia invested $2 billion each in Coherent and Lumentum to address connectivity bottlenecks in next-generation data centers, positioning these optical infrastructure providers as critical to resolving data center constraints.

• Nvidia is rapidly deploying capital across AI infrastructure companies to secure its position in the shift toward agentic AI systems and next-generation data center architectures.

• The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

The Nvidia (NASDAQ:NVDA) deals are continuing to come in fast, perhaps too fast for the retail crowd to keep up with. At the end of 2025, I predicted that Nvidia’s deal-making cadence would continue, and while the magnitude of the deals could be smaller, bite-sized nibbles across the industry, I have no doubt that they will keep coming in rapidly.

For many who lived through the dot-com bust, such rapid-fire dealmaking might be unsettling. It’s adding to the circularity, and even if AI isn’t in any sort of bubble, it might not take more than the mildest of growth scares to cause a vicious reversal.

Of course, it’s hard to tell for sure if investments being made across the AI waters are still a great value relative to growth, or if we’re entering a more dangerous period.

READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks

More bets for Nvidia?

Either way, those who believe in Jensen Huang might have little to be worried about, as the man certainly has the track record to show when it comes to investments beyond Nvidia. Arguably, his past restraint might be the only piece of hair when it comes to the bets he’s made.

In any case, it’s clear that Nvidia is making good use of its capital by reinvesting across the space. Undoubtedly, the GPU titan has invested in the very firms that buy its chips. But it seems to be investing beyond just its big customers.

Notably, the big Groq deal stands out as more of an “acqui-hire” to get a better seat in the AI inference boom. It’s a brilliant move that I’ve described as buying its way to the next phase of the AI revolution.

Additionally, $2 billion bets on Coherent (NASDAQ:COHR) and Lumentum (NASDAQ:LITE) are more of a bet on the “optical plumbing” of next-generation data centers. These two companies, which are critical infrastructure providers, stand out for fixing connectivity bottlenecks in next-generation data centers.

Nebius is the latest Nvidia investment for now

In any case, Nvidia’s latest bet, which is on Nebius (NASDAQ:NBIS) once again, seems to signal that the opportunities might lie within infrastructure. Nvidia isn’t just dabbling with a small bet in the so-called “neocloud” play anymore.

With a fresh $2 billion investment, it really does feel like Jensen Huang and company see value after more-recent turbulence. Investing across the scene amid volatility, $2 billion at a time, may very well be the new trend for the GPU juggernaut.

Nebius stock spiked after the investment was announced, but who knows how long the enthusiasm will last. At its worst, shares of Nebius were down close to 45% from the all-time high to the six-month low. That’s more than a correction; it’s a crash.

While turbulence is pretty much a guarantee for Nebius stock at this point, I do think investors should keep watch of the relatively small ($27.3 billion market cap) AI cloud player. Perhaps waiting for that Nvidia investment premium to be shaved off could be the way to go. With Nebius stock tumbling 3.5% on Thursday’s session, it might not take long before the Nvidia investment-induced spike is wiped out.

Nebius could catch a lift as the agentic age takes off

Either way, Huang is right when he touts the firm as “building an AI cloud designed for the agentic era.” Since Jensen Huang is pretty much the Godfather of AI (or at least one of them), according to notable Wall Street AI bulls like Wedbush’s Dan Ives, investors should be all ears whenever Nvidia makes a bet on a publicly-traded AI play after a bit of a market dip.

Of course, Nebius stands out as more circular than some of Nvidia’s other recent bets (Nebius is ready to buy up those Rubin chips in bulk), but, nonetheless, it’s an intriguing one that makes Nebius compelling again, especially for those who’ve forgotten about the stock amid its rough past couple of months.

So, should investors buy the hype? Or stand back as the deal-making frenzy continues with Nvidia and the pack?

If the Nebius’ rough patch gets rougher, it might make sense to start doing a bit of buying, at least in my view, especially if you’re keen on the agentic-optimized AI cloud and the advantages it may possess over rivals.

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