Fabless chipmaker Nvidia (NASDAQ:NVDA) earned its reputation by pioneering graphics processing units (GPUs), which made video games more realistic. And over time, NVDA stock has posted astounding gains.

As we’ll see, those gains might be too much, too fast. The run-up in share price over the past few months has been astounding, and value-conscious investors might be wary.

On the other hand, it’s entirely possible for expensive stocks to become even more expensive. Besides, the momentum in NVDA stock is undeniable.

Still, Nvidia’s shareholders will be glad to know that there’s a major catalyst in the works. And it involves a collaboration with America’s most famous and feared e-commerce company.

A Closer Look at NVDA Stock

So, let’s talk about the rally in NVDA stock. It’s been one heck of a ride.

Back in March 2020, the Nvidia share price fell to the $50 level. This turned out to be the bargain of a lifetime – peak fear leads to peak opportunities, you see.

After bottoming out, NVDA stock rallied hard, then took a breather for half a year, and then rallied hard again. By early August of 2021, it was a $200 stock.

Is the 150% gain justified? Value-focused investors might not think so.

Consider that Nvidia’s trailing 12-month price-earnings ratio is 97.5. Heck, even Amazon (NASDAQ:AMZN) is trading at a lower multiple than that (58.8, in case you’re curious).

Also, income seekers probably won’t like Nvidia’s paltry annual dividend yield of 0.08%. At that rate, why bother to offer a dividend at all?

As a final note on the share price, Nvidia completed a 4-for-1 stock split on July 20. So, at least NVDA stock is more affordable now, even if it’s still expensive.

Arm Takeover Block?

I’ll mention Amazon again in a moment. But first, an issue that everybody seems to be talking about lately.

In September of last year, investors learned of Nvidia’s intention to acquire chip designer Arm in a deal valued at $40 billion.

Why would Nvidia be willing to part with $40 billion for this company? Apparently, Nvidia’s seeking to leverage Arm’s presence in multiple tech markets:

With Arm’s broad customer base, NVIDIA can bring its GPU and AI technologies to a wide range of end markets, including mobile and the Internet of Things. In PCs and datacenters, NVIDIA will grow and expand the Arm platform, turbocharging the development of the Arm ecosystem as a thriving alternative to x86.

Or maybe not. Reportedly, U.K. anti-monopoly regulators are considering blocking the Arm acquisition due to potential national security risks.

There’s also talk that Chinese regulators might be looking at this situation as well (though I can’t confirm this).

The point is, don’t start grabbing NVDA stock in anticipation of the Arm takeover happening soon. At this rate, the proposed deal could drag on for many months.

Bringing AI to the Fleet

And now, for some good news (finally). If you’re going to invest in Nvidia, this is as good a reason as any.

Reportedly, an autonomous trucking company called Plus inked a deal with Amazon to provide at least 1,000 self-driving systems, which will be retro-fitted on Amazon’s delivery fleet.

That’s a huge coup for Plus, right? Yet, it’s also a big win for Nvidia.

As the press release states, “These systems are powered by NVIDIA DRIVE Xavier for high-performance, energy-efficient and centralized AI compute.”

It’s a perfect fit, as the Xavier line is cutting-edge. It incorporates no fewer than six different types of processors, including a deep learning accelerator and a programmable vision accelerator.

And this collaboration could last for a while. Apparently, Plus plans to transition to “the next generation of AI compute, NVIDIA DRIVE Orin,” starting in 2022.

The Bottom Line

So, there you have it: several reasons to be wary of NVDA stock, and one big reason to buy it anyway.

The reality of the situation is that anything attached to Amazon is likely to be a winner.

Thus, there’s no need to worry about the Arm acquisition potentially getting blocked. Nvidia has other things going on, including a connection to the e-commerce company that’s taking over the planet.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.