--- title: "Could Nvidia Use its Nearly Limitless Cash to Swallow an Industry Giant?" type: "News" locale: "en" url: "https://longbridge.com/en/news/287249226.md" description: "Nvidia, valued at $5.4 trillion, is considering potential acquisitions of industry giants like Dell and Cisco to enhance its AI capabilities. Despite denials of merger talks, analysts suggest that Nvidia could leverage its high stock value to make significant purchases, potentially acquiring multiple companies at a fraction of its worth. Currently, NVDA stock holds a Strong Buy consensus with a target price indicating a 35% upside potential." datetime: "2026-05-21T15:52:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287249226.md) - [en](https://longbridge.com/en/news/287249226.md) - [zh-HK](https://longbridge.com/zh-HK/news/287249226.md) --- # Could Nvidia Use its Nearly Limitless Cash to Swallow an Industry Giant? Nvidia (NVDA) is sitting on a mountain of around $5.4 trillion in value, and it has everyone on Wall Street wondering what it will do next. As the company cements its role as the absolute ruler of the artificial intelligence boom, the chatter has turned to a massive question: Will the world's most valuable tech company use its nearly limitless cash to swallow an industry giant? While Nvidia officials have denied rumors of merging with hardware leaders like Dell (DELL) or HPE (HPE), the sheer math behind a potential buy makes a massive deal look not only possible but strategically smart. ### Meet Samuel – Your Personal Investing Prophet High conviction NVDA bears now have this Tradr ETF ## **Why Nvidia Needs More than Just Chips** Nvidia is the clear king of the AI chip market, but building AI factories is incredibly hard. As AI moves from simple testing into real-world business use, companies need more than just smart processors. They need power management, networking cables, cooling systems, and massive storage units to hold all their data. The complexity of these systems has created a logjam. To deliver AI tools at the speed the market wants, Nvidia needs help from the "adults" in the room—big, established companies with years of experience in sales, shipping, and setting up complex computer systems. This is why CEO Jensen Huang has been busy signing deals with titans like Cisco (CSCO), Dell, and Siemens to build products that work perfectly together right out of the box. ## **Nvidia's Financials Make a Takeover Look like a Bargain** When you look at the raw numbers, a massive purchase starts to look like a deal Nvidia cannot ignore. Nvidia currently trades at a much higher price compared to older, established hardware firms. - **Dell:** With a market value of roughly $153 billion and annual sales over $120 billion, Dell is a major player. If Nvidia used its own high-valued stock to fund a purchase, it could theoretically buy Dell at a fraction of its own cost, instantly gaining a huge footprint in servers and storage. - **Cisco:** Many analysts argue that a Cisco purchase would be the "holy grail." Cisco leads the world in networking, which is the literal backbone of modern AI systems. With a market value of $470 billion, Cisco is relatively cheap for a company with Nvidia's $5.4 trillion price tag. - **HPE:** While HPE is the smallest of the group with a $44 billion value, it offers the least strategic gain compared to the massive size of the other two. The most shocking reality is the scale of Nvidia's power: The company could technically buy Dell, Cisco, and HPE all at once at their current prices and still spend only about 10% of its total value. Jensen Huang is clearly playing the long game. The firm ensures its hardware remains the center of the computing universe through its partnerships with computer makers like Dell and Cisco. However, as the race for AI dominance heats up, relying on partners may eventually lose its appeal compared to owning the whole supply chain from top to bottom. Whether Nvidia decides to pull the trigger on a giant deal remains the biggest mystery in tech. ## **What Is the Prediction for NVDA Stock?** Turning to Wall Street, NVDA stock has a Strong Buy consensus rating based on 40 Buys, one Hold, and one Sell assigned in the last three months. At $299.97, the average Nvidia stock price target implies a 35% upside potential. ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [CSCL.US](https://longbridge.com/en/quote/CSCL.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [DELL.US](https://longbridge.com/en/quote/DELL.US.md) - [HPE.US](https://longbridge.com/en/quote/HPE.US.md) - [CSCO.US](https://longbridge.com/en/quote/CSCO.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [HPE-C.US](https://longbridge.com/en/quote/HPE-C.US.md) ## Related News & Research - [Jensen Huang Delivers Massive News for Nvidia Stock Investors!](https://longbridge.com/en/news/286978476.md) - [Morgan Stanley Sets the Stage for Nvidia Stock Ahead of Earnings](https://longbridge.com/en/news/286976315.md) - [Here's how Nvidia stock has historically performed after earnings: Chart of the day](https://longbridge.com/en/news/286743878.md) - [Nvidia Stock Hit Record Highs on Huang’s China Visit. Q1 Earnings Could Take NVDA Even Higher.](https://longbridge.com/en/news/286804171.md) - [Nvidia’s Blockbuster Quarter Is Coming — And NVDA Stock Is Still Cheap](https://longbridge.com/en/news/286926735.md)