Fabulous of chips Nvidia (NASDAQ:NVDA) earned its reputation by creating pioneering graphics processing units (GPUs), which made video games more realistic. And over time, NVDA shares have seen amazing gains.

As we will see, these gains could be too big, too fast. The rise in stock prices over the past few months has been staggering, and value-conscious investors might be wary.

On the other hand, it is entirely possible that expensive stocks will become even more expensive. In addition, the momentum of the NVDA share is undeniable.

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

A closer look at NVDA’s actions

So let’s talk about the NVDA share rally. It was a hell of a ride.

In March 2020, Nvidia’s share price fell to the $ 50 level. It turned out to be the business of a lifetime – maximum fear leads to maximum opportunity, you see.

After bottoming out, NVDA stock rallied sharply, then took a hiatus for six months, then rallied sharply again. At the start of August 2021, it was $ 200 stock.

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

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

Additionally, income seekers are unlikely to like Nvidia’s meager annual dividend yield of 0.08%. At this rate, why bother to offer a dividend?

As a final note on the share price, Nvidia finalized a 4-for-1 stock split on July 20. So at least NVDA stocks are more affordable now, although they are still expensive.

Blocking takeover of weapons?

I will mention Amazon again in a moment. But first, a problem everyone seems to be talking about lately.

In September of last year, investors learned of Nvidia’s intention to acquire the 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 is looking to leverage Arm’s presence in several tech markets:

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

Or maybe not. It would appear that UK anti-monopoly regulators are considering blocking the acquisition of Arms due to potential national security risks.

There is also talk that Chinese regulators are also considering this situation (although I cannot confirm that).

The point is not to start grabbing NVDA stock in anticipation of Arm’s takeover anytime soon. At this rate, the proposed deal could drag on for several months.

Bringing AI to the Fleet

And now for some good news (finally). If you are considering investing in Nvidia, this is a good reason.

Apparently, a stand-alone trucking company called More has reached an agreement with Amazon to supply at least 1,000 autonomous driving systems, which will be installed on Amazon’s delivery fleet.

It’s a huge hit for Plus, isn’t it? Still, 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 computing.”

It’s a perfect fit, because the Xavier line is avant-garde. It integrates no less than six different types of processors, including a deep learning accelerator and a programmable vision accelerator.

And this collaboration could last for some time. Apparently, Plus plans to move to “the next generation of AI computing, NVIDIA DRIVE Orin,” starting in 2022.

The bottom line

So there you have it: several reasons to be wary of NVDA stocks, and a good reason to buy them anyway.

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

Thus, there is no need to worry about the potential blockage in the acquisition of Arm. Nvidia has other things going on, including a connection with the e-commerce company that’s conquering the planet.

At the date of publication, David Moadel did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.