Nvidia plans to acquire Groq's assets for $20 billion, targeting AI inference leadership and addressing GPU limitations for specific workloads. The deal structure secures Groq's LPU technology and key personnel, while avoiding a prolonged process, reflecting urgency amid rapid AI sector evolution. NVDA's data center revenues surged to $51.2B last quarter, with gross margins at 73.6% and Q4 guidance signaling further acceleration.
Nvidia is wrapping up 2025 on a strong note, with its stock extending a powerful year-long rally despite some volatility in recent sessions. Shares of the AI chipmaker closed at $188.61 on December 24, marking a 40.45% gain year to date.
Groq more than doubled its valuation to $6.9 billion, from $2.8 billion in August last year, following a $750 million funding round in September.
The startup's CEO and some staff are to join Nvidia as part of new nonexclusive deal, a sign of growing demand for cutting-edge AI chips.
Nvidia Corporation earns a Buy rating, supported by robust fundamentals, a reasonable valuation, and technical chart breakout potential. NVDA trades at a forward P/E of ~27x, well below dot-com bubble levels, with a forward PEG of 1.08x, reflecting sustained high growth. Management maintains visibility to $500 billion in Blackwell and Rubin revenue through 2026, with upside potential from new GPU agreements.
Nvidia Corp. has entered into a non-exclusive licensing agreement with AI chip maker Groq, and will acquire some of the startup's executive team.
Nvidia is buying the AI chip startup Groq for $20 billion, according to a report from CNBC. The purchase is expected to be Nvidia's largest ever, and with Groq on its side, Nvidia is poised to become even more dominant in chip manufacturing.
Nvidia has agreed to buy Groq, a designer of high-performance artificial intelligence accelerator chips, for $20 billion in cash, CNBC reported on Wednesday.
Nvidia is making its largest purchase ever, acquiring nine-year-old chip startup Groq for about $20 billion. The company was founded by creators of Google's tensor processing unit, or TPU, which competes with Nvidia for artificial intelligence workloads.
From a technical perspective, Nvidia (NVDA) is looking like an interesting pick, as it just reached a key level of support. NVDA recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
Shares of Nvidia Corp. (NASDAQ: NVDA) have popped 5.2% in the past week, after it announced it would begin shipping H200 chips to China in February and that it would invest $1.5 billion on a server farm in Israel.
OpenAI's upcoming GPT model and the data center buildout will be telling for the chip maker's competitive advantage, Wall Street says