3 6 Ke·2025-09-25 02:16Core Insights - Nvidia is currently facing a "problem" that most of its competitors would envy: an excess of cash on hand [1] - Recently, Nvidia has made headlines not for soaring chip sales, but for its substantial investments, including a $5 billion stake in Intel and plans to invest up to $100 billion in OpenAI [2][9] - Nvidia's free cash flow has reached $72 billion over the past four quarters, with expectations to exceed $100 billion by the end of the fiscal year [2][5] Financial Performance - Nvidia's free cash flow for the past four quarters is significantly higher than the expected total for all other tech giants, excluding Apple, for this year [5] - The company has spent nearly $50 billion on stock buybacks in the past four quarters and has recently increased its buyback plan by an additional $60 billion [6] Investment Strategy - Despite the increase in buybacks and R&D spending, Nvidia is still struggling to effectively utilize its cash reserves [6][7] - With tightening antitrust regulations globally, the likelihood of Nvidia making significant acquisitions is low [7] - Nvidia is adopting an "AI closed-loop" investment model, focusing on smaller, strategic transactions rather than large acquisitions [8] Partnerships and Collaborations - Nvidia has supported cloud service providers and other key clients through investments and partnerships, which in turn boosts demand for its AI chips [8] - The $100 billion investment in OpenAI is expected to enhance the latter's computing capabilities, which will likely lead to increased purchases of Nvidia chips [9] - Nvidia's $5 billion stake in Intel is seen as a dual benefit, fostering local chip manufacturing while reducing reliance on TSMC [10]