Nvidia is up 179% year-to-date and is reviewing its use of funds for mergers and acquisitions in light of regulatory scrutiny

Nvidia (NVDA, Financials) is up 179% year to date, reflecting its leadership in the AI ​​chip market; Still, its cash reserves provide analysts with more ammunition. Chief Financial Officer Colette Kress of the UBS Global Technology and AI Conference in Arizona, valued at $38.5 billion as of October 31, 2024, said the company’s significant cash reserves are being considered for strategic mergers and acquisitions, to gain new talents and skills.

Nvidia’s cash rose to $38.5 billion at the end of its third fiscal quarter from $34.8 billion in the previous quarter. Due to the growing demand for its artificial intelligence processors, the money accumulation shows good financial success.

M&A prospects aside, Nvidia has returned money to owners in a big way. Expressing confidence in its financial position, the company announced a $50 billion share repurchase program in August 2024, among the largest this year.

Although the company has a bright future, authorities have noticed Nvidia’s attempts to increase its AI presence. The European Union is currently reviewing Nvidia’s $700 million bid for Israeli artificial intelligence company Run:ai. The investigation focuses primarily on potential antitrust issues, particularly whether Nvidia offers discounts to consumers who purchase both hardware and GPU software. With an 84% market share in the GPU sector, the EU investigation focuses on Nvidia’s actions that are likely to support its market leadership.

These activities show how Nvidia is using its growing cash reserves to negotiate the regulatory environment that suits its market position, reward shareholders and also explore strategic acquisitions.

This article first appeared on GuruFocus.