University of Kwazulu-Natal

Nvda Stock Surges After Nvidia S 20b Groq Ai Deal Marketbeat

Bonisiwe Shabane
-
nvda stock surges after nvidia s 20b groq ai deal marketbeat

NVDA stock price surged past $190 on December 26, 2025, following Nvidia’s historic $20 billion licensing agreement with AI chip startup Groq. The deal marks Nvidia’s largest acquisition ever, targeting the high-speed inference segment of artificial intelligence. With the stock up roughly 40% in 2025, analysts now see $250 as a realistic target by year-end. Nvidia announced on December 23 that it would license Groq’s proprietary low-latency inference technology in a $20 billion deal. This represents the chipmaker’s largest-ever strategic investment into acquisition and partnership. Groq will license its compiler expertise and hardware designs to Nvidia while remaining an independent company.

The deal includes Groq’s founder and CEO Jonathan Ross joining Nvidia’s leadership team. Nvidia aims to integrate Groq’s inference acceleration capabilities into future Blackwell and Rubin GPU architectures. This move strengthens Nvidia’s dominance in both training and inference workloads. NVDA stock delivered approximately 40% returns in 2025, with shares closing at $188.61 on December 24 before rallying past $190 following the Groq announcement. The stock opened December 26 in premarket trading at $190.16, marking a significant milestone for the semiconductor leader. Trading experts note the stock found strong support at $170 recently.

Wall Street sentiment remains exceptionally bullish on Nvidia as the year closes. Multiple analysts have raised price targets, with mean projections reaching $255. The combination of strong 2025 Q3 guidance and the Groq deal announcement has created substantial momentum heading into 2026. In a move that has sent shockwaves through Silicon Valley and Wall Street alike, the landscape of artificial intelligence hardware was fundamentally reshaped this week. On December 24, 2025, NVIDIA (NASDAQ: NVDA) announced a landmark $20 billion strategic "acqui-hire" and licensing agreement with the AI chip startup Groq. This transaction not only sets a record for a private semiconductor exit but also signals a frantic pivot among tech giants to secure the specialized hardware required for the next phase of the AI...

The deal’s staggering $20 billion valuation represents a watershed moment for the "American AI Stack." By effectively absorbing Groq’s talent and intellectual property, NVIDIA is moving to consolidate its dominance at a time when... For the broader market, this surge in M&A activity suggests that the era of independent "GPU-killer" startups may be closing as large-cap incumbents move to neutralize architectural threats with unprecedented capital deployments. The acquisition of Groq was structured as a "non-exclusive licensing agreement" coupled with a massive hiring wave, a tactical maneuver designed to sidestep the grueling antitrust scrutiny that famously scuttled NVIDIA’s attempt to buy... Under the terms of the deal, NVIDIA will pay $20 billion to acquire Groq’s technology licenses and bring over roughly 80% of its engineering staff, including founder Jonathan Ross, a former Google (NASDAQ: GOOGL)... This move follows a meteoric rise in Groq’s valuation, which stood at just $6.9 billion following a funding round in September 2025. The 3x premium paid in just 90 days highlights the desperation of legacy chipmakers to solve the "latency bottleneck." Unlike traditional GPUs that rely on High Bandwidth Memory (HBM3e), Groq’s Language Processing Unit (LPU)...

As global AI revenue from inference officially surpassed training revenue for the first time in late 2025, the ability to deliver "instant" AI became the industry's most valuable currency. Initial market reactions have been overwhelmingly bullish for the sector leader, with NVIDIA shares climbing 4.2% in after-hours trading following the announcement. Analysts at major firms have noted that by bringing Groq into the fold, NVIDIA has effectively neutralized its most credible architectural rival in the inference space, while simultaneously blocking competitors like Advanced Micro Devices... Eseandre is a blockchain lover from Nigeria, who also likes music and protecting women's rights. Nvidia agreed to a non-exclusive $20 billion cash licensing deal with Groq for AI inferencing technology, sending NVDA shares higher in pre-market trading as the company pushes deeper into AI deployment. ⬤ Nvidia moved higher in pre-market trading after announcing a major shift in its AI strategy.

Groq's CEO revealed a non-exclusive licensing deal where Nvidia will pay $20 billion in cash to access, develop and deploy Groq's AI inferencing technology. GroqCloud will keep operating independently, while Groq CEO Jonathan Ross—a former Google engineer who helped build the Tensor Processing Unit project—will join Nvidia. NVDA closed at $188.61 on December 24 and was trading near $189.84, up about 0.65% in the pre-market session. ⬤ The deal aligns with Nvidia's push into AI inferencing while the company reportedly scales back its SuperCloud (DGX Cloud) initiative. That project aimed to provide GPU-based cloud services directly to enterprise customers but risked competing with major hyperscalers developing their own custom ASIC hardware. Nvidia has also been expanding internal engineering resources tied to a custom ASIC program.

⬤ Nvidia's established CUDA software ecosystem remains a key advantage. The agreement is non-exclusive, meaning Groq can still partner with other firms while cooperating with Nvidia. This flexibility may help both companies navigate the evolving AI hardware landscape. Published: Friday, December 26, 2025 at 3:57 pm Nvidia Stock Climbs Following Deal with AI Firm Groq Nvidia (NVDA) shares are trading higher today, surpassing $190, driven by a recently announced agreement with artificial intelligence (AI) company Groq. The deal, expected to fuel Nvidia's growth in the coming year, has prompted analysts to revise their price targets for the company's stock.

Rosenblatt Securities analyst Stacy Rasgon has reiterated a positive outlook on the chipmaker, setting a new Nvidia price target of $245. This target reflects the analyst's confidence in Nvidia's leadership within the AI sector. The non-exclusive licensing agreement, which covers Groq's inference technology, is seen as a significant positive catalyst. As part of the agreement, several senior Groq executives will be joining Nvidia. The deal is viewed as strategically important for Nvidia. The analyst suggests the agreement could alleviate investor concerns regarding potential competition from Alphabet's Tensor Processing Units (TPUs).

The licensing of inference technology is considered crucial for Nvidia, particularly as AI expands into the inference stage. Rasgon's new price target suggests a potential 30% increase from current levels. While this target is slightly below the average 12-month Nvidia price target of $263.58, it still indicates substantial growth potential, according to analysis from multiple analysts. The agreement is expected to help extend Groq's Language Processing Unit (LPU) through Nvidia's CUDA software ecosystem, further solidifying Nvidia's competitive advantage in the AI market. Nvidia management has not yet commented publicly on the agreement. BNN's Perspective: The deal between Nvidia and Groq appears to be a smart strategic move.

It not only strengthens Nvidia's position in the AI market but also addresses potential competitive threats. While the market is optimistic, investors should remain cautious and consider the broader economic landscape before making investment decisions. Keywords: Nvidia, NVDA, Groq, AI, stock price, analyst, Rosenblatt Securities, Stacy Rasgon, price target, licensing agreement, inference technology, CUDA, Alphabet, TPU, LPU, chipmaker, investment The S&P 500 (^GSPC) trades around 6,927–6,936, down roughly 0.06% on the day but still holding near fresh all-time highs. The Nasdaq Composite (^IXIC) sits near 23,577–23,646, lower by around 0.15%, and the Dow Jones Industrial Average (^DJI) is roughly 48,685–48,712, off about 0.09%. Index futures earlier pointed to essentially the same picture: Dow futures down about 0.1%, S&P 500 futures fractionally softer, Nasdaq-100 futures slightly positive.

This looks like nothing is happening, but on a weekly and yearly view it is the opposite. All three majors are up more than 1% for the week and have logged five straight winning sessions, while both the Dow and S&P 500 recently set record closes. The S&P 500 is now up around 18% in 2025, on track for its sixth 15%+ gain year out of the last seven, while the Nasdaq has climbed more than 20% despite a brief... The Santa Claus rally window – the last five trading days of the year plus the first two of the new year – is open, and historically the S&P 500 has delivered about 1.3%... Price action so far fits that pattern: thin volume, mild intraday softness, but an underlying bullish bias into year-end. AI remains the core risk engine for Nasdaq and S&P 500 performance.

Nvidia (NVDA) trades modestly higher, roughly +0.5% to +1.1%, after confirming a $20 billion cash asset deal to acquire AI-inference-related assets from Groq. This is the largest transaction in Nvidia’s history and tightens its grip on critical inference technology just as hyperscalers plan the next wave of AI data centers. The market is still willing to treat NVDA as both a macro bellwether and a stock in a buyable zone, with the company holding the title of most valuable public company globally. That sends a clear message: despite constant “AI bubble” talk, real money is still leaning into NVDA on concrete deal flow. Palantir Technologies (PLTR) and Tesla (TSLA) also sit in technical buy zones, and both are used as satellites around the Nvidia core. For PLTR, the thesis remains long-duration government and enterprise demand for AI-enabled defense and data platforms.

For TSLA, the narrative is dominated by robotaxi optionality. There are five days left for Elon Musk to deliver on the promise of removing robotaxi safety monitors, which keeps speculative capital engaged. As long as NVDA, PLTR and TSLA trade with positive skew, the Nasdaq retains upside torque even with headline valuations stretched. The AI supply chain story extends past Nvidia into memory. Micron Technology (MU) is up nearly 2%, and SanDisk jumps around 4%, after reports that Samsung Electronics and SK Hynix are preparing to raise prices on fifth-generation HBM3E chips by close to 20% for... This kind of pricing move is not marginal.

HBM is the constraint component for many advanced AI systems, and a ~20% contract price increase indicates that demand from hyperscalers remains robust enough to sustain higher costs. For MU and SanDisk, that shift directly supports revenue and margin assumptions into 2026. For Trading News readers, the key point is that AI infrastructure is still in an expansion phase, not a plateau. When suppliers can push through double-digit price hikes and still expect orders to fill, the sector’s earnings momentum is not done. Oracle (ORCL) shows what happens when the market stops believing the AI execution story. The stock trades near $196.80, down about 0.35% on the day, but the intraday move is marginal compared with the bigger picture: ORCL is down roughly 30% this quarter, setting up its sharpest quarterly...

Three months after appointing Clay Magouyrk and Mike Sicilia as co-CEOs, investors are openly questioning whether Oracle can build enough data-center capacity to justify OpenAI’s more than $300 billion multi-year cloud spend commitment. With the S&P 500 up about 18% year-to-date and at a record, a 30% quarterly slide in ORCL is severe underperformance. The message is simple: the AI cloud narrative alone is not enough; markets now demand hard evidence of scale, margins and speed. Until Oracle proves it can convert that giant AI contract into tangible capacity and stable returns, the stock sits firmly in laggard territory, and relative to AI leaders like NVDA and memory names like... In consumer discretionary, Ross Stores (ROST) stands out for going against the industry’s footprint reduction trend and getting paid for it. During 2025, Ross opened 90 new stores across Ross Dress for Less and dd’s Discounts, while peers such as Dollar General (DG) guided to closing around 100 stores and Walgreens (WBA) announced hundreds of...

The equity response has been decisive. ROST printed a fresh all-time high earlier in December, and the stock is up more than 20% this year, compared with roughly 17.9% for the S&P 500. The move accelerated after Ross posted better-than-expected third-quarter results and raised fourth-quarter guidance, signaling that value-focused consumers are still spending and that Ross is taking share from weaker chains. The stock has also held up despite tariff fears and macro uncertainty, which positions ROST as a structural retail outperformer going into 2026. From a portfolio standpoint, this is the type of name that justifies a Buy on consolidation, not a short-term trade to fade. MarketBeat is a financial media company that empowers individual investors to make better trading decisions with real-time financial data, best-in-class research tools, and financial analysis.

While the markets were quiet for the post-Christmas trading session, NVIDIA (NASDAQ: NVDA) made a noise that will echo for years. The company announced a definitive agreement to pay approximately $20 billion in cash to license the technology and hire the core engineering team of AI chip startup Groq. The timing of this announcement is poetic. On the very day NVIDIA is distributing its quarterly dividend of $0.01 per share to loyal shareholders, it is aggressively reinvesting its massive cash pile to secure its future dominance. The market reaction has been swift and bullish. NVIDIA shares climbed roughly 1.5% following the news, trading in the $188 to $191 range.

People Also Search

NVDA Stock Price Surged Past $190 On December 26, 2025,

NVDA stock price surged past $190 on December 26, 2025, following Nvidia’s historic $20 billion licensing agreement with AI chip startup Groq. The deal marks Nvidia’s largest acquisition ever, targeting the high-speed inference segment of artificial intelligence. With the stock up roughly 40% in 2025, analysts now see $250 as a realistic target by year-end. Nvidia announced on December 23 that it ...

The Deal Includes Groq’s Founder And CEO Jonathan Ross Joining

The deal includes Groq’s founder and CEO Jonathan Ross joining Nvidia’s leadership team. Nvidia aims to integrate Groq’s inference acceleration capabilities into future Blackwell and Rubin GPU architectures. This move strengthens Nvidia’s dominance in both training and inference workloads. NVDA stock delivered approximately 40% returns in 2025, with shares closing at $188.61 on December 24 before ...

Wall Street Sentiment Remains Exceptionally Bullish On Nvidia As The

Wall Street sentiment remains exceptionally bullish on Nvidia as the year closes. Multiple analysts have raised price targets, with mean projections reaching $255. The combination of strong 2025 Q3 guidance and the Groq deal announcement has created substantial momentum heading into 2026. In a move that has sent shockwaves through Silicon Valley and Wall Street alike, the landscape of artificial i...

The Deal’s Staggering $20 Billion Valuation Represents A Watershed Moment

The deal’s staggering $20 billion valuation represents a watershed moment for the "American AI Stack." By effectively absorbing Groq’s talent and intellectual property, NVIDIA is moving to consolidate its dominance at a time when... For the broader market, this surge in M&A activity suggests that the era of independent "GPU-killer" startups may be closing as large-cap incumbents move to neutralize...

As Global AI Revenue From Inference Officially Surpassed Training Revenue

As global AI revenue from inference officially surpassed training revenue for the first time in late 2025, the ability to deliver "instant" AI became the industry's most valuable currency. Initial market reactions have been overwhelmingly bullish for the sector leader, with NVIDIA shares climbing 4.2% in after-hours trading following the announcement. Analysts at major firms have noted that by bri...