Jensen Huang, chief government officer of Nvidia Corp., throughout the Taiwan Semiconductor Manufacturing Co. (TSMC) sports activities day occasion in Hsinchu, Taiwan, on Saturday, Nov. 8, 2025.
Lam Yik Fei | Bloomberg | Getty Pictures
When Nvidia this week stated it could take a $2 billion stake in chip design firm Synopsys, it was simply the most recent in a string of huge investments introduced by the chipmaker this 12 months.
Nvidia has additionally stated it could take a $1 billion stake in Nokia, make investments $5 billion in Intel and $10 billion in Anthropic — $18 billion in funding commitments from these 4 offers, not counting smaller enterprise capital investments.
That does not even embody the largest dedication of all: $100 billion to purchase OpenAI shares over various years, though there’s nonetheless no definitive settlement, Nvidia finance chief Colette Kress stated Tuesday at the usGlobal Expertise and AI convention.
It is some huge cash and numerous offers, however Nvidia’s received the money to put in writing huge checks.
On the finish of October, Nvidia had $60.6 billion in money and short-term investments. That is up from $13.3 billion in January 2023, simply after OpenAI launched ChatGPT. That launch three years in the past was key to creating Nvidia’s chips essentially the most useful tech product.
As Nvidia has reworked from a maker of gaming know-how into essentially the most useful U.S. firm, its stability sheet has turn into a fortress, and buyers are more and more questioning what the corporate will do with its money.
“No firm has grown on the scale that we’re speaking about,” stated CEO Jensen Huang, when requested what the chipmaker plans to do with all its money, on Nvidia’s earnings name final month.
Analysts polled by FactSet count on the corporate to generate $96.85 billion in free money movement this 12 months alone and $576 billion in free money movement over the following three years.
Some analysts wish to see Nvidia spend extra of its money on share repurchases.
“Nvidia is ready to generate over $600B in free money movement over the following few years and it ought to have lots left over for opportunistic buybacks,” wrote Melius Analysis analyst Ben Reitzes in a be aware on Monday.
The corporate’s board elevated its share repurchase authorization in August, including $60 billion to its complete. Within the first three quarters of the 12 months, it spent $37 billion on share repurchases and dividends.
“We’ll proceed to do inventory buybacks,” Huang stated.
Nvidia is doing the buybacks, nevertheless it’s not stopping there.
Huang stated that Nvidia’s stability sheet energy offers its prospects and suppliers confidence that orders sooner or later, which he referred to as offtake, might be crammed.
“Our status and our credibility is unbelievable,” Huang stated. “It takes a very robust stability sheet to try this, to help the extent of progress and the speed of progress and the magnitude related to that.”
Kress, Nvidia’s CFO, on Tuesday stated the corporate’s “largest focus” is ensuring it has sufficient money to ship its next-generation merchandise on time. Most of Nvidia’s largest suppliers are gear producers like Foxconn and Dell, which may require that Nvidia present working capital to handle stock and construct further manufacturing capability.
Huang referred to as his firm’s strategic investments “actually essential work” and stated that if corporations like OpenAI develop, it drives further consumption of AI and Nvidia’s chips. Nvidia has stated that it doesn’t require any of its investments to make use of its merchandise, however all of them do anyway.
“All the investments that we have finished to date — all of it, interval — is related to increasing the attain of Cuda, increasing the ecosystem,” Huang stated, referring to the corporate’s synthetic intelligence software program.
In an October submitting, Nvidia stated it had has already made $8.2 billion in investments in non-public corporations. For Nvidia, these investments have changed acquisitions.
Nvidia’s $7 billion acquisition of Mellanox in 2020 is the most important the corporate has ever made, and it laid the groundwork for its present AI merchandise, which are not single chips however whole server racks that promote for round an estimated $3 million.
However the firm confronted regulatory points when it tried to purchase chip know-how agency Arm for $40 billion in 2020.
Nvidia referred to as off the deal earlier than it could possibly be accomplished after regulators within the U.S. and U.Ok. raised considerations about its results on competitors within the chip business. Nvidia has bought some smaller corporations lately, to bolster its engineering groups, nevertheless it hasn’t accomplished a multibillion acquisition for the reason that Arm deal failed.
“It is laborious to consider very important, giant sorts of M&A,” Kress this week stated, talking at an investor convention. “I want one would come out there, nevertheless it’s not going to be very straightforward to take action.”
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