Nvidia Could Buy AI21 Next. What Does That Mean for NVDA Stock?

Core Insights - Nvidia is strategically shifting focus towards the enterprise sector and ASICs in response to competition from Google's TPU chips [1] Financial Performance - In Q3 2025, Nvidia reported revenues of $57.1 billion, reflecting a 62% annual growth rate, while earnings increased by 60% to $1.30 per share, surpassing the consensus estimate of $1.26 [3] - Core data center revenues rose by 66% year-over-year to $51.2 billion [3] - Net cash from operating activities increased to $23.8 billion from $17.6 billion year-over-year, with free cash flow rising by 65% to $22.1 billion [4] - Nvidia ended the quarter with a cash balance of $60.6 billion and short-term debt of just under $1 billion, with long-term debt at $7.5 billion [4] - For Q4, Nvidia anticipates revenue of $65 billion, indicating an annual growth of 65.4% [5] Strategic Moves - Nvidia is pursuing acquisitions to enhance its position in the AI sector, including a $20 billion deal to acquire AI startup Groq and potential interest in Israeli startup AI21 Labs [6]