Nvidia CEO Jensen Huang Just Delivered Fantastic News for Intel Investors

Over the past decade, Nvidia (NASDAQ: NVDA) has transformed from a niche chip designer serving gamers into the clear leader of the artificial intelligence (AI) era. At the center of this shift are its graphics processing units (GPUs) -- advanced chipsets that have become the backbone of generative AI. This pivot helped fuel a historic stock price run, marked by revenue growth, record profitability, and plenty of free cash flow.When companies generate substantial free cash flow, they generally have lots of options for putting that capital to use. Nvidia has been leaning heavily into product innovation -- expanding its GPU roadmap with next-generation chip architectures such as Blackwell, Blackwell Ultra, and Rubin. Management has also recently authorized a $60 billion share repurchase program.Another option is to make strategic investments outside of Nvidia's core ecosystem. In this area, Nvidia has been fairly conservative. Aside from a 2024 partnership with GPU-as-a-service provider Nebius Group, the company's other transactions to date have been relatively specialized. While these investments add value, they fall short of the kind of transformative deal investors may be anticipating. The restraint is notable, given management's prior commentary about building mergers and acquisitions into the long-term playbook.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool