Jensen Huang, chief govt officer of Nvidia Corp., in the course of 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 might take a $2 billion stake in chip design firm Synopsys, it was simply the newest in a string of large investments introduced by the chipmaker this yr.
Nvidia has additionally stated it might 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 Know-how and AI convention.
It is some huge cash and loads of offers, however Nvidia’s obtained the money to put in writing massive 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 probably the most worthwhile tech product.
As Nvidia has reworked from a maker of gaming expertise into probably the most worthwhile U.S. firm, its steadiness sheet has change 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 anticipate the corporate to generate $96.85 billion in free money circulation this yr alone and $576 billion in free money circulation over the subsequent three years.
Some analysts want to see Nvidia spend extra of its money on share repurchases.
“Nvidia is ready to generate over $600B in free money circulation over the subsequent few years and it ought to have so much left over for opportunistic buybacks,” wrote Melius Analysis analyst Ben Reitzes in a observe 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 yr, it spent $37 billion on share repurchases and dividends.
“We will proceed to do inventory buybacks,” Huang stated.
Nvidia is doing the buybacks, nevertheless it’s not stopping there.
Huang stated that Nvidia’s steadiness sheet power provides its prospects and suppliers confidence that orders sooner or later, which he known as offtake, will likely be crammed.
“Our repute and our credibility is unimaginable,” Huang stated. “It takes a extremely robust steadiness sheet to do this, to assist the extent of development and the speed of development 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 might require that Nvidia present working capital to handle stock and construct further manufacturing capability.
Huang known as his firm’s strategic investments “actually necessary 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 carried out up to now — 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 personal corporations. For Nvidia, these investments have changed acquisitions.
Nvidia’s $7 billion acquisition of Mellanox in 2020 is the biggest the corporate has ever made, and it laid the groundwork for its present AI merchandise, which are not single chips however total server racks that promote for round an estimated $3 million.
However the firm confronted regulatory points when it tried to purchase chip expertise agency Arm for $40 billion in 2020.
Nvidia known as off the deal earlier than it could possibly be accomplished after regulators within the U.S. and U.Okay. raised issues about its results on competitors within the chip trade. Nvidia has bought some smaller corporations in recent times, to bolster its engineering groups, nevertheless it hasn’t accomplished a multibillion acquisition because the Arm deal failed.
“It is exhausting to consider very important, massive forms 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 simple to take action.”
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