Overview
- Nvidia announced a definitive agreement to pay about $20 billion in cash to license Groq’s technology and hire the startup’s core engineering team to bolster real-time inference performance.
- Shares rose roughly 1% to close at $190.53 following the news, lifting Nvidia’s market value to more than $4.6 trillion on a relatively light post-holiday trading day.
- The company and analysts framed the transaction around the 2025 “Inference Flip,” where revenue from running AI models surpassed one-time training, making low-latency accelerators a priority.
- Nvidia says it remains sold out of cloud GPUs and is working through a large order backlog, reinforcing demand visibility heading into 2026.
- Competition is building from Chinese GPU newcomers and hyperscalers’ custom chips, yet firms such as Bernstein and Cantor reiterated bullish views on Nvidia’s 2026 setup, including an Outperform and a top-pick call.