Nvidia Plays Kingmaker Again. Why The Meta Deal Is A Winn…

What it means for Meta

For Meta, the company receives a $3 billion investment from Nvidia and helps ensure it has access to the chips and hardware it will need as it aggressively expands its AI capabilities and invests in new data centers and infrastructure.

Nvidia continues to dominate the market for AI chips and has much of the cutting-edge technology that hyperscalers need, so it’s important for companies Meta to establish a close relationship with Nvidia.

What it means for Nvidia

For Nvidia, it’s the latest example of the company shoring up its AI empire by bringing customers, suppliers, and other stakeholders into its fold through a series of investments, partnerships, and contractual commitments.

These moves give Nvidia both preferred treatment among the partners that it needs most, putting it on the inside track in AI, and the investment it’s made also gives it exposure to stocks Meta, meaning their success is Nvidia’s success.

At a time when companies Meta, Anthropic, Space Exploration Technology, and others are raising massive amounts of capital, Nvidia is a reliable investor with deep pockets and a desire to invest across the AI spectrum, meaning we’re ly to see more deals this one.

As of the end of the second quarter, Nvidia already owned stakes in Intel, an integrated chipmaker; SpaceX, which has become fast-growing AI infrastructure company; CoreWeave and Nebius, two neocloud companies; Coherent, a provider of optics solutions for AI infrastructure; Synopsys, a specialist in electronic design automation (EDA); Nokia, a developer of AI-Radio Access Network technology, and Generate Biomedics, which uses machine learning and generative AI to design custom therapeutics.

The company has also taken stakes in OpenAI and Anthropic, ensuring it has close partnerships with the two leading AI labs and that they continue to buy its chips. It forged an agreement with OpenAI to invest up to $100 billion in the company as it deploys at least 10 gigawatts of AI data centers using Nvidia systems.

NVDA – Nvidia

$217.94+$1.94 (+0.90%)

NASDAQ · As of 4:00 PM ET 10/27/26

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Key data points

Market capMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.$5.21T

Day’s range$215.53 – $219.19

52wk range$164.27 – $243.37

Volume84.4M

Avg volume116.7M

Gross margin74.67%

Dividend yield0.24%

Why it’s a winning strategy for Nvidia

Nvidia faces competition in the market for AI chips, most notably from Advanced Micro Devices. AMD has ed a similar playbook to Nvidia to a smaller degree and even announced a $1 billion investment in Meta shortly after Nvidia said it would invest $3 billion in Meta. However, Nvidia’s leadership is going to be difficult to unseat, given its network of partnerships, deep relationships, and cutting-edge technology.

Nvidia will have to maintain its pace of innovation to ensure it keeps the technological lead, and it has done that since the launch of ChatGPT. In fact, SpaceX CEO Elon Musk recently declared that his Nvidia’s Vera Rubin architecture was superior and said that SpaceX would exclusively build on Nvidia hardware.

Expect Nvidia to continue to forge more deals the one it just did with Meta, especially as the AI infrastructure spenders look for new sources of capital. Nvidia is becoming a kingmaker, and that will only widen its economic moat as the AI boom continues.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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