Nvidia (NVDA) CEO Jensen Huang was asked on Monday whether the company's newest investment is the kind of circular financing investors keep worrying about, and he said it was not. "This is not circular because obviously they do their own business and we do our own business, and MediaTek is already incredibly profitable, incredibly successful," Huang told Bloomberg's Ed Ludlow in an interview alongside MediaTek CEO Rick Tsai on Aug. 31.
The deal that prompted the question is worth $3.5 billion, and one detail about it has been widely flattened. Nvidia is not buying MediaTek shares. It bought $3.5 billion of convertible bonds issued by the company, part of an overseas convertible offering of roughly $3.9 billion in which Alphabet (GOOGL) also participated at an undisclosed size. Nvidia holds debt that can convert later, not equity today, and the release names no conversion price, no valuation, and no resulting stake.
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SMCI vs. CoreWeave: 1 AI Infrastructure Model Has the Bigger Opportunity
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The deal that prompted the question is worth $3.5 billion, and one detail about it has been widely flattened. Nvidia is not buying MediaTek shares. It bought $3.5 billion of convertible bonds issued by the company, part of an overseas convertible offering of roughly $3.9 billion in which Alphabet (GOOGL) also participated at an undisclosed size. Nvidia holds debt that can convert later, not equity today, and the release names no conversion price, no valuation, and no resulting stake.
Dear GameStop Stock Fans, Mark Your Calendars for September 8
SMCI vs. CoreWeave: 1 AI Infrastructure Model Has the Bigger Opportunity
Why ***** ysts Think Sellas Life Sciences Stock Can Gain 150% From Here
#NVIDIA #mediatek #incredibly
5 days ago
