Nvidia Is on a Dealmaking Spree: Should You Buy NVDA Stock Amid Fears of an AI Bubble?

Core Insights - Nvidia is experiencing significant cash flow due to its chip sales that are driving the global AI revolution, leading to a series of major investments totaling up to $100 billion in OpenAI, $5 billion in Intel, and £2 billion in UK AI startups [1][2] Investment Activities - Nvidia has partnered with Alibaba to integrate its robotics software and AI development tools into Alibaba's cloud platform, while also investing in over 50 AI startups in 2024, a number expected to increase this year [2][3] - The company's investments in AI startups have raised concerns about it effectively buying revenue through funding, as many of these startups are or will become Nvidia's customers [3] Analyst Reactions - Analysts have responded positively to Nvidia's investment strategy, with several brokerages raising their target prices, although Citigroup has lowered its target price by $10 to $200 [4] Market Concerns - There are growing fears of an AI bubble, reminiscent of the dot-com era, as some AI startups are commanding unusually high valuations, with notable figures like Federal Reserve Chair Jerome Powell and Meta Platforms CEO Mark Zuckerberg expressing concerns [5][6]