Many companies are worried about money, NVIDIA is also, the difference is that NVIDIA because too much money do not know how to spend before worry. NVIDIA’s net profit for fiscal 2020 was $2.8 billion in fiscal 2020 and $3.5 billion in cash flow in fiscal 2020, according to NVIDIA’s February results, which also boosted their assets at hand, with cash and equivalents of $10.897 billion, or about Rmb76.3 billion.
What is the concept of $10.9 billion in cash assets? To know that NVIDIA’s revenue in fiscal 2020 was only $10.9 billion, Intel’s cash flow was $12 billion, but their revenue was $70 billion, which putn NV’s ability to save money.
The $10.9 billion is not all, and NVIDIA’s total assets at the end of January were $17.32 billion, or almost 120 billion yuan.
With more money on hand and less money on hand, NVIDIA’s biggest job in two years was the acquisition of Israel’s Melanox, which has a strong presence on data center network connectivity chips, helping to strengthen NVIDIA’s advantage in the data center market.
The deal has not been finalized, with antitrust authorities in the U.S. and Europe approved, leaving China’s antitrust approvals, though NVIDIA has previously said it is confident it will eventually be approved.
With so much money on hand, NVIDIA’s acquisition of Melanox doesn’t need to borrow money from a Wall Street consortium, and it’s enough to save itself.
The question is, even if the acquisition of Melanox costs a lot, NVIDIA still has a lot of cash equivalent assets, leisure interest is not a good investment, what should they do?
At a recent Morgan Stanley meeting, NVIDIA CFO Chief Financial Officer Colette Kress said nVIDIA may choose to buy back some of its shares in return to shareholders after the acquisition is completed.
But that hasn’t been decided yet, and Colette Kress says she’s been reluctant to do so so far.