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Nvidia leans on large financing deals as rivals chip away at its lead
The company reported free cash flow rising to $48.5 billion and raised its quarterly dividend to 25 cents while announcing an $80 billion buyback as it pursues new funding arrangements.
Nvidia is increasingly relying on its financial firepower to maintain its position in the AI boom as competitors such as AMD and Google work to reduce its once-dominant technology advantage, CNBC reported August 18, 2026. The new push centers on a proposed $500 billion financing pact with major Wall Street firms and up to $105 billion in support for an OpenAI data center in Ohio, according to the coverage.
The article highlights that Nvidia’s quarterly free cash flow has grown 18-fold over three years to $48.5 billion. In its most recently reported quarter, fiscal Q4 2026, Data Center revenue reached a record $62.3 billion, up 75% year over year and 22% quarter over quarter, while fiscal year revenue rose to a record $215.9 billion, up 65%.
Nvidia also reported holding $30.2 billion in marketable equity securities, up from $12.9 billion a year earlier, which the article describes as real liquidity to help fund the financing strategy without pressuring the balance sheet. At the same time, Nvidia lifted its quarterly dividend to 25 cents from a penny and announced an $80 billion share buyback, indicating the financing effort is being paired with shareholder returns.
The coverage notes that the financing structure includes an option for Nvidia to cover 25% of a loan if it goes bad, creating exposure for Nvidia even though the deals are designed to encourage buyers. It also points out that Nvidia is both a chip seller and a financing backer, so any slowdown in AI spending could affect the company twice, reinforcing the link between funding deals and demand for its products.