3 ms·

NVDA stock is up 3.5% so far today, which is ~$150B, or slightly more than one Intel. $5B is pocket change in comparison.

• prewett 1y ago
  Except that Nvidia, Inc. doesn't own any of that NVDA stock, other people do, and they cannot access that money. Nvidia, Inc. owns net profit, which is orders of magnitude less than market cap. Last year's net profit was just under $73 billion. ($5 billion is still very affordable, too be sure).
  • jonas21 1y ago
    The board could issue more stock, which would dilute existing shareholders by about 0.1% and (in theory) cause the stock price to drop by 0.1%. But yeah, it's probably easier to just use cash on hand.
  • sekai 1y ago
    > Except that Nvidia, Inc. doesn't own any of that NVDA stock, other people do, and they cannot access that money. Nvidia, Inc. owns net profit, which is orders of magnitude less than market cap. Last year's net profit was just under $73 billion. ($5 billion is still very affordable, too be sure). Not all deals are made in cash, they can borrow money against their market share.
  • baq 1y ago
    I think you may have missed AMC and TSLA; for quite a while their best selling products and biggest revenue drivers were their stock. Reflexivity is a thing; NVDA could issue 5, 10 or 20B and I don't think the price would move very much in this market. (Note that could change tomorrow.)