By Jabran Kundi
Publication Date: 2026-10-19 13:33:00
Nvidia Corporation (NASDAQ:NVDA) is reportedly in early discussions to acquire Reflection AI or make a larger investment in the startup, according to the Financial Times. Reflection AI develops open-weight AI models. NVDA has already invested $800 million in the company. While talks are still early, they raise another question for investors: Is Nvidia stock itself too cheap? Nvidia remains at the center of the AI boom, but ranks only 3rd in our list of Top 10 Co-Packaged Optics (CPO) Stocks to Buy in 2026.
A Deal That Could Take Many Forms
Several deal structures are possible, including a full acquisition or an acqui-hire that brings in staff and licenses technology. The latter could avoid the regulatory review associated with a full acquisition. Nvidia could also increase its equity stake or supply chips and computing power. Reflection AI was last valued at $25 billion in March.
CEO Jensen Huang has called for an open-weight AI ecosystem. Broader adoption of AI models could also increase demand for NVDA chips. But the discussions are still in their early stages; the terms are unclear, and there is no guarantee the companies will reach an agreement. Nvidia’s AI ambitions have caught investors’ attention, but it’s not the only growth stock on billionaires’ radar. See which 10 stocks made the list, including NVDA.
Is Nvidia Undervalued?
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