Nvidia is at the forefront of companies generating significant revenue as interest earned from cash holdings increases.

Reported 6 months ago

The article discusses how companies like Nvidia are benefitting from the surge in interest rates, with nearly 1 in 10 non-financial companies in the S&P 500 earning more in interest income than they pay in debt expenses. Nvidia, in particular, reported a significant increase in interest income, allowing it to cover its interest expenses and dividend during the first quarter. The increase in interest income is attributed to corporate cash piles growing during the pandemic and companies investing in money-market funds, government securities, and certificates of deposit. Federal Reserve officials signaling higher rates for an extended period is expected to continue this trend, with companies actively managing their cash investments to generate higher returns.

Source: YAHOO

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