Overview
- Nvidia said it will pay about $20 billion in cash to license Groq’s technology and hire its core engineering team, a move aimed at boosting real‑time inference performance.
- Shares rose roughly 1.5% on the announcement, lifting Nvidia’s market value past $4.6 trillion during the quiet post‑holiday session.
- CEO Jensen Huang previously said the company is “sold out” of cloud GPUs, and industry data indicate an “Inference Flip” in 2025 with usage revenue surpassing training.
- Hyperscalers spent roughly $400 billion on AI‑related capex in 2025, and consensus now pegs 2026 spending near $527 billion, reinforcing demand for advanced chips.
- Analysts kept favorable stances into 2026—Bernstein reiterated Outperform and Cantor named Nvidia a top pick—while Raymond James flagged potential upside from U.S. approvals for H200 sales to approved customers in China and Chinese GPU IPOs like MetaX’s 700% surge stirred short‑term volatility.