Let’s Talk Money: 5 Stocks to Buy Now BEFORE Nvidia Buys Them
Corporate America is focused on growth. That could mean producing new goods and services. For some companies, it may make more sense to buy that growth. That usually means buying a small company outright.
The “growth-through-acquisition” strategy is popular in the drug manufacturing and technology space. That’s because small players with one breakthrough idea suddenly become attractive to the players with big wallets. With the AI boom underway, it’s no surprise that many tech giants are looking for such plays.
For example, chipmaker Nvidia (NVDA) has been the runaway leader in the AI chip space. But they do that partially through their own production, and partially from acquiring other companies or partnering with them.
Currently, Nvidia owns over 1,960,784 shares of ARM Holdings (ARM). Valued at over $147 million, or 0.19% shares. ARM designs microprocessor architecture. That’s essentially the “brains” of any chip or device.
That’s a key component that stacks in well with Nvidia’s core business. Having this ownership stake allows Nvidia to keep up with any developments ARM comes up with.
Plus, the stake also makes it easier for Nvidia to potentially grab any new ARM chip ahead of other players. That could even mean locking smaller players out of the market. That would allow Nvidia to maintain its dominance.