Overview
- Nvidia announced a definitive agreement to pay about $20 billion in cash to license Groq’s inference technology and hire its core engineering team, including top executives.
- The company has told investors it is “sold out” of cloud GPUs, and analysts point to a multi‑quarter Blackwell/Rubin pipeline and a roughly $500 billion outlook referenced since October.
- Shares edged higher on the news as firms such as Bernstein, Cantor Fitzgerald, and Truist reiterated bullish views and targets up to $275 heading into 2026.
- Large investors have increased exposure in 2025, with David Tepper’s Appaloosa boosting its Nvidia stake from 300,000 to 1.9 million shares, signaling confidence in sustained AI infrastructure demand.
- Risks remain, including competition from Google TPUs and Amazon custom chips, uncertainty around China export approvals, and a reported cloud-division reorganization described by The Information via TheFly.