Jensen Huang, chief government 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 mentioned it will take a $2 billion stake in chip design firm Synopsys, it was simply the newest in a string of huge investments introduced by the chipmaker this 12 months.
Nvidia has additionally mentioned it will 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 embrace the largest dedication of all: $100 billion to purchase OpenAI shares over a lot of years, though there may be nonetheless no definitive settlement, Nvidia finance chief Colette Kress mentioned Tuesday at the united statesGlobal Know-how and AI convention.
It is some huge cash and loads of offers, however Nvidia’s acquired the money to jot down 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 probably the most useful tech product.
As Nvidia has reworked from a maker of gaming know-how into probably the most useful 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,” mentioned 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 about to generate over $600B in free money movement over the following few years and it ought to have rather a lot 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 whole. 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 mentioned.
Nvidia is doing the buybacks, however it’s not stopping there.
Huang mentioned that Nvidia’s steadiness sheet energy offers its prospects and suppliers confidence that orders sooner or later, which he referred to as offtake, will likely be crammed.
“Our fame and our credibility is unimaginable,” Huang mentioned. “It takes a extremely sturdy steadiness sheet to try this, to assist the extent of development and the speed of development and the magnitude related to that.”
Kress, Nvidia’s CFO, on Tuesday mentioned 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 extra manufacturing capability.
Huang referred to as his firm’s strategic investments “actually vital work” and mentioned that if corporations like OpenAI develop, it drives extra consumption of AI and Nvidia’s chips. Nvidia has mentioned 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 completed to date — all of it, interval — is related to increasing the attain of Cuda, increasing the ecosystem,” Huang mentioned, referring to the corporate’s synthetic intelligence software program.
In an October submitting, Nvidia mentioned 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 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 issues about its results on competitors within the chip business. Nvidia has bought some smaller corporations lately, to bolster its engineering groups, however it hasn’t accomplished a multibillion acquisition for the reason that Arm deal failed.
“It is exhausting to consider very important, giant forms of M&A,” Kress this week mentioned, talking at an investor convention. “I want one would come obtainable, however it’s not going to be very simple to take action.”
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