Is Nvidia Inflating Sales With Its Investments in Other Companies?

The short answer to the question of whether Nvidia is inflating its own sales by investing in its own customers is "No."

Nvidia has invested roughly $43 billion in other companies who also buy chips from Nvidia.

Nvidia's market cap as of July 31 is nearly $4.9 trillion.

What does that mean? Nvidia's investments in companies that also purchase from it is less than one percent of its value.

Jensen Huang has a clear vision of how to build out the AI economy and where limits to expansion exist. He's making strategic investments to break those limits to his larger goals and thus far, those investments are a rounding error in his company's valuation.

Is that inflating demand for its own products in order to drive up their own stock price? That seems like a tough claim to make when the magnitude of his investments and the value of his company are so very different.