Nvidia(US:NVDA) Sou Hu Cai Jing·2025-10-07 09:16Core Insights - Nvidia announced a historic investment of $100 billion in OpenAI, indicating a strategic move to strengthen their partnership and secure future orders in the AI sector [1][3] - Nvidia currently holds over $50 billion in cash and reported a profit of over $70 billion in the last fiscal year, with a 59% profit growth in the latest quarter, prompting the need for significant investment [1][3] Business Strategy - The investment is seen as a way for Nvidia to integrate vertically and secure future orders from OpenAI, mitigating risks from potential emerging competitors in the AI space [3] - Nvidia's past success as a small graphics card company highlights the unpredictable nature of the tech industry, where new players can rapidly emerge [3] Market Dynamics - The investment aligns with broader market trends, as Nvidia's market capitalization has reached $4.4 trillion, and the company needs to maintain a compelling narrative to support its stock price [6] - The ongoing bull market in U.S. stocks is significantly driven by AI stocks, with Nvidia at the forefront, making its performance critical for overall market sentiment [6] National Strategy - From a national strategic perspective, Nvidia's investment in OpenAI aims to reinforce the U.S.'s leading position in AI technology, especially as competition from China intensifies [8] - The investment is also crucial for maintaining a strong U.S. stock market, which is essential for economic confidence amid challenges such as poor employment data and trade wars [8]