Nvidia’s stock surge is fueled by the demand for AI chips, leaving the company with a massive cash reserve. With $60.6 billion in cash and investments, investors debate how Nvidia should use its cash pile. Recent deals include a $2 billion stake in Synopsys and major investments in Nokia, Intel, and Anthropic. Buybacks and dividends are an option, with $62.2 billion left for repurchases. Analysts expect Nvidia to generate $96.85 billion in free cash flow this year and $576 billion over the next three years, supporting stock buybacks as the company’s priority. Analysts remain bullish on NVDA stock, with a consensus “Strong Buy” rating and an average price target of $252.67, indicating a 37% upside potential.

Read more at Barchart: Does Nvidia Have Too Much Cash? Unpacking the Case for More NVDA Stock Buybacks, Larger Dividends, and Less Deals.