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Nvidia weighs a Perplexity stake as it heads into Q2 earnings
Nvidia’s free cash flow over the past 12 months totaled $119.0 billion, up 54.0% year over year, giving it room for AI investments as it prepares to address partnerships on its earnings call.
Nvidia is scheduled to report second-quarter fiscal 2027 results after the closing bell on Aug. 26, setting up investor focus on what CEO Jensen Huang says about the company’s investments and partnerships, according to Yahoo Finance.
The report highlights that Nvidia has been in talks with Perplexity AI about taking a stake that would value the AI startup at $30.0 billion, higher than $20.0 billion last year, and that Perplexity’s annualized revenue has risen this year from $250.0 million to more than $750.0 million.
Nvidia’s investment strategy is aimed at helping ensure customers continue buying its chips, but the outlet notes there are concerns that a slowdown in AI and chip demand could pressure Nvidia’s balance sheet.
Yahoo Finance also points to Nvidia’s scale of cash generation, saying its free cash flow in the last 12 months was $119.0 billion, up 54.0% from a year ago, with gross margins near 75.0%, alongside Nvidia’s existing stakes in companies including Intel, CoreWeave, Nebius Group, and Iren.