By Adam Spatacco, The Motley Fool
Publication Date: 2025-11-17 11:00:00
Nvidia has quietly made a number of strategic investments over the last year.
For the last three years, semiconductor giant Nvidia (NVDA +1.68%) emerged as the most important company in the artificial intelligence (AI) revolution. The reason is simple: The company’s graphics processing units (GPU) are the training and inference backbone of generative AI development.
As a result, big tech has been pouring hundreds of billions of dollars into capital expenditures (capex) over the last few years in an effort to procure Nvidia’s data center hardware.
AMZN Capital Expenditures (TTM) data by YCharts
As record revenue and profit generation become a hallmark of each passing earnings call, Nvidia is now quietly making some moves beyond the traditional GPU and data center opportunity.
Let’s explore how Nvidia is deploying its capital and assess why its latest billion-dollar investment could completely reshape the AI landscape.
Today’s Change
(1.68%) $3.14
Current Price
$190.00
Nvidia is putting on a masterclass in capital allocation
Over the last 12 months, Nvidia generated $72 billion in free cash flow. As the trends below illustrate, Nvidia’s cash flow his been accelerating at an impressive rate throughout the AI revolution. The main catalyst behind this is the immense pricing power Nvidia is able to command for its GPUs.
Given the company’s…