{"id":594716,"date":"2026-08-16T04:52:16","date_gmt":"2026-08-16T04:52:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/594716\/"},"modified":"2026-08-16T04:52:16","modified_gmt":"2026-08-16T04:52:16","slug":"nvidia-is-turning-its-massive-cash-flow-into-another-ai-growth-engine","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/594716\/","title":{"rendered":"Nvidia Is Turning Its Massive Cash Flow Into Another AI Growth Engine"},"content":{"rendered":"\n

One often overlooked chapter in the dramatic rise of Nvidia Corporation (NVDA) is cash flow and what Jensen Huang’s company is doing with it. <\/p>\n

In fiscal 2023 (ending February 2023), Nvidia recorded only $3.8 billion in free cash flow. But as its graphics processing units became must-have chips for companies that were starting to build out artificial intelligence infrastructure, Nvidia’s profits and cash flow exploded upward.\u00a0 <\/p>\n

More News from Barchart <\/p>\n

According to Macrotrends, the following chart represents NVDA’s FCF movements: <\/p>\n

Nvidia’s Fiscal Year <\/p>\n

Free Cash Flow\u00a0 <\/p>\n

Percentage Increase <\/p>\n

2024 <\/p>\n

$27.02 billion <\/p>\n

609.6% <\/p>\n

2025 <\/p>\n

$60.85 billion <\/p>\n

125.2% <\/p>\n

2026 <\/p>\n

$96.67 billion <\/p>\n

58.8% <\/p>\n

Now the largest publicly traded company in the world by market capitalization, Nvidia is looking for smart ways to spend that cash pile. For instance, it has committed at least $6.5 billion in companies developing photonics technology, including $2 billion each for Lumintum (LITE), Coherent Corporation (COHR), and Marvell Technology (MRVL), and $500 million for Corning (GLW). <\/p>\n

Also, it reportedly plans to invest up to $3 billion in privately held Lancium, which is an energy\/data center infrastructure company backed by Blackstone (BX) that is seeking to go public as early as next year. <\/p>\n

Nvidia is making an initial $2 billion investment in exchange for a 20% stake, and then could add another $1 billion if the company meets specific targets. <\/p>\n

Lancium notably owns the 1.2-gigawatt Lancium Clean Campus in Abilene, Texas, which is the site of the $500 billion public-private Stargate project that seeks to build next-generation AI infrastructure and a network of advanced data centers. <\/p>\n

Considering the massive demand for AI computing capacity and data centers, Nvidia’s $3 billion investment could reap huge rewards for investors \u2013 both in chip sales and Lancium’s overall growth, as Nvidia would have a 20% stake in the energy\/data center infrastructure company. <\/p>\n

Let’s take a closer look at Nvidia, which is reporting its fiscal 2027 second quarter earnings on Aug. 26. <\/p>\n

\"\"<\/a> www.barchart.com About Nvidia Stock <\/p>\n

Nvidia has arguably been the biggest winner in the race to build out AI infrastructure. The company has amassed a $5.4 trillion valuation, built largely on the GPUs that are bundled by the hundreds to supply the computing power needed to do high-level calculations. <\/p>\n

Story Continues <\/p>\n

Nvidia’s GPUs have made generative AI, machine learning, and agentic AI possible. Its next-generation architecture, Vera Rubin, uses NVLink chip-to-chip interconnects to allow GPUs and central processing units (CPUs) to share memory space and work more efficiently. <\/p>\n

Shares are up 24.1% in the last year, topping the S&P 500 Index’s ($SPX) 20.1% gain. And notably, Nvidia trades at a forward price-to-earnings ratio of 24.75 times that is relatively close to the 21 times forward price-to-earnings of the broader market. Put simply, you are paying just a slight premium to have Nvidia stock in your portfolio right now. <\/p>\n

Analysts are expecting another solid quarter from Nvidia when it reports earnings Aug. 26. The consensus estimate by 11 analysts surveyed shows the Street is expecting earnings of $2.01 per share, which would be a gain of 103.03% from a year ago. <\/p>\n

\"\"<\/a> www.barchart.com Nvidia Beats on Earnings <\/p>\n

One reason why Nvidia stock keeps climbing is that the company sets a ridiculously high bar \u2013 and then clears it every time. Nvidia has beaten analysts’ expectations for the last four quarters, and there’s no reason to believe it won’t happen again. <\/p>\n

Revenue in the first quarter of fiscal 2027 was $81.6 billion, up 85% from a year ago. Data center sales were again the biggest driver, jumping 92% to $75.2 billion. <\/p>\n

Nvidia reported gross margins of 75% in the most recent quarter, with non-GAAP net income of $45.54 billion. Earnings of $1.87 beat analysts’ estimates of $1.70 per share. <\/p>\n

As the company prepares for Q2 earnings, Huang has once again been in the news, announcing this week that Nvidia is investing with a series of financial institutions, including Blackstone, BlackRock (BLK), Apollo Asset Management (APO), Brookfield Asset Management (BAM), Goldman Sachs (GS), and KKR & Company (KKR). The Wall Street companies and Nvidia are working to mobilize more than $500 billion in third-party capital to aid in the AI buildout. Huang told CNBC that the effort signals that investors should consider AI computing in a new light. <\/p>\n

“This is really the first time that technology chips have become an investable asset class,” he said. “These are revenue-generating assets now. They’re productive, they’re long-lived, they’re fungible, they’re flexible.” <\/p>\n

If Huang can effectively make that case for cash-flush Nvidia this month, then the Wall Street push signals a potential new tailwind for Nvidia stock. <\/p>\n

On the date of publication, Patrick Sanders had a position in: NVDA. All information and data in this article is solely for informational purposes. This article was originally\u00a0published on Barchart.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"One often overlooked chapter in the dramatic rise of Nvidia Corporation (NVDA) is cash flow and what Jensen…\n","protected":false},"author":2,"featured_media":594717,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,208458,60,14742,233,80],"class_list":["post-594716","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-infrastructure-company","tag-ireland","tag-jensen-huang","tag-nvidia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/594716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=594716"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/594716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/594717"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=594716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=594716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=594716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}