"Nvidia ( NASDAQ:NVDA) just seems to keep the deals and partnerships coming. Undoubtedly, the GPU king has plenty of cash to spend and, perhaps most importantly, efficiencies to unlock as it opts to team up to tackle some of the world's greatest challenges. At the end of the day, more "circular" dealmaking may be a growing concern for some, but to prevent overlapping efforts (and hefty spend), collaboration only makes sense."
"Of course, excessive investments could elevate the risk of an eventual collapse (think a house of cards scenario) if the AI bubble burst scenario ends up playing out, perhaps due to a lack of monetization progress or something that's not yet on the radars of the market. Indeed, sometimes, it's the off-the-radar risks that can deliver the biggest hit. Nvidia isn't slowing down when it comes to deal-making"
Nvidia is rapidly expanding through acquisitions and investments, deploying billions to secure GPUs, talent, and strategic partnerships. Recent moves include a $2 billion stake in CoreWeave, a $1 billion co-innovation deal with Eli Lilly, a $4.9 billion bet tied to Intel, and a $20 billion asset-and-talent acquisition from Groq. The company seeks efficiencies and collaboration to avoid duplicated efforts while accelerating AI development. Heavy dealmaking increases exposure to valuation risk and potential collapse if AI monetization stalls or unforeseen risks materialize. Management appears attentive to valuation and has been buying dips, balancing aggressive growth with market sensitivity.
Read at 24/7 Wall St.
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