By Faizan Farooque
Publication Date: 2025-12-04 19:27:00
This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) is amassing a lot of cash, but it’s not able to use it all right away. The company’s cash and short-term investments reached $60.6 billion at the end of October, thanks to a huge rise in demand for its AI processors.
This week’s $2 billion investment in Synopsys (SNPS, Financials) is on top of the $1 billion already promised to Nokia (NOK, Financials), the $5 billion to Intel (INTC, Financials), and the $10 billion to Anthropic. Nvidia is also thinking about a strategy that would take several years and cost up to $100 billion to buy OpenAI shares. However, the details are still unclear.
As orders grow, CEO Jensen Huang stated that Nvidia’s balance sheet helps customers and suppliers feel more secure. Manufacturing partners like Foxconn and Dell need working cash to construct bigger systems.
This year, analysts estimate around $97 billion in free cash flow, and over the following three years, they expect almost $500 billion. Some people say Nvidia should buy back more stock. In August, the corporation added $60 billion to its repurchase authorization. This year, it has spent $37 billion on repurchases and dividends.
Huang added that deliberate investments enable more people use Nvidia’s CUDA ecosystem. After the failed Arm transaction, Nvidia said it had put $8.2 billion into private companies because it couldn’t make any big acquisitions.
Colette Kress, the CFO, indicated that big…
