NVDA Stock - NVIDIA's Next Move

30/05/2023 12 min

Listen "NVDA Stock - NVIDIA's Next Move"

Episode Synopsis


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NVDA stock is hitting new highs making us wonder, what's NVIDIA's next move? One hint might lie in the cash they have on hand - $15 billion - and their shelf registration statement that looks to raise even more cash. What to do with this war chest? NVIDIA might look to acquire some competitive threats or bolt-on growth, especially considering their acquisition of ARM fell through. In looking at their latest earnings call, data center revenues are expected to absolutely explode, and that growth may be sustained for a few more quarters going forward. All that extra cash being generated, along with cash on hand, might provide an opportunity to make another sizable acquisition. The share price will need to sustain its high for 30 days after which it might be used for an M&A event. What companies out there do you think NVIDIA might acquire? If you think an acquisition is out of the question, what should they spend that $15 billion in cash on? Retired some of the $9.7 billion in long-term debt on hand? Let us know your thoughts in the comments.