According to the Financial Times, Nvidia is in early talks to acquire Reflection AI or make a larger investment in the open-weight AI model startup, in which it has already invested $800 million. Possible structures include a full acquisition, an acqui-hire with technology licensing, a larger equity stake, or chip and computing supply, and the terms remain unclear. Reflection AI was last valued at $25 billion in March. Nvidia's forward P/E is 24.62x, about 42% below its five-year average of 42.13x, while EPS is forecast to rise 95.23% this fiscal year and 70.90% next year. The article notes the market may already reflect expected EPS growth slowing to 21.70% by fiscal 2030. Nvidia holds a $62.47 billion cash balance that could fund a deal, but the main risk is earnings growth slowing more than expected.
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▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/16/2026 | 214.14 |
| Change that session | -1.42% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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