This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA), the dominant supplier of artificial-intelligence accelerators, secured another boost across its manufacturing network Monday as supplier Wistron raised $1.47 billion. Wistron plans to spend the proceeds on foreign-currency raw materials while scaling AI-server production.
Wistron issued 25 million depositary receipts representing 250 million common shares at a 5.5% discount. The deal dilutes existing shareholders by approximately 7.29%, but it gives the manufacturer fresh financial firepower after opening a $700 million Texas facility that produces Nvidia’s latest AI systems.
The raise is roughly 2.1 times the disclosed cost of that factory, although Wistron has not earmarked every dollar for Texas. Nvidia gains from a better-funded supplier capable of purchasing components and pushing out more servers without touching Nvidia’s balance sheet. The GuruFocus chart reinforces that strength: Nvidia carries a 95/100 GF Score, powered by exceptional profitability, growth and financial strength, while valuation remains the clearest weak spot. Supplier concentration is still the risk investors cannot ignore.
https://finance.yahoo.com/technology/ai/articles/nvidia-gets-1-47-billion-215008444.html
