Nvidia Stock Nvidia S Competitive Moat Just Got Better Analyst Says

Bonisiwe Shabane

-Dec 31, 2025, 6:10 PM

nvidia stock nvidia s competitive moat just got better analyst says

Nvidia (NVDA) stock tested a key level Tuesday after a 1.2% decline on Monday. The artificial intelligence giant will be among those in the spotlight at the annual CES tech trade show, which kicks off Monday in Las Vegas. Founder and Chief Executive Jensen Huang is expected to address topics including AI robotics, simulation, content creation, and gaming. So is… 12/30/2025 Dow Jones AI giant Nvidia stock hit an early buy point in recent sessions after shares bullishly regained their 50-day... 12/30/2025 Dow Jones AI giant Nvidia stock hit an early buy...

Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Get market updates, educational videos, webinars, and stock analysis. Robert Way/iStock Editorial via Getty Images Never go against Jensen Huang. I've learned it the hard way when I used to trade in and out of NVIDIA Corporation (NVDA Sign up now for a hugely discounted trial to test our service promise!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, GOOGL, AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor.

Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Nvidia just dropped $20 billion on key assets from a hot AI startup. Analysts are buzzing—this could supercharge its edge in the exploding inference market. But is it enough to fend off growing threats?

The implications for the stock are huge... Financial market analysis from 29/12/2025. Market conditions may have changed since publication. Imagine dominating a market so thoroughly that everyone’s chasing your shadow, and then you quietly scoop up a potential rival to make yourself even stronger. That’s pretty much what happened last week in the world of AI chips. A massive deal flew somewhat under the radar amid holiday distractions, but those paying attention know it could reshape the competitive landscape for years to come.

The deal in question involves billions changing hands for technology and talent that directly targets one of the hottest growth areas in artificial intelligence right now. It’s not a full takeover, but it’s close enough to matter—a non-exclusive licensing arrangement worth a staggering amount, paired with key people jumping ship to the buyer. In my view, this kind of strategic play shows just how seriously the leaders are taking the next phase of AI development. We’ve all heard about the training boom that’s driven explosive demand for powerful processors. But now, the focus is shifting. Inference—the actual running of trained models in real-world applications—is where the real volume is headed.

And that’s exactly what this acquisition aims to supercharge. Bernstein analyst Stacy Rasgon says Nvidia’s (NVDA) recent deal with the California-based artificial intelligence (AI) startup, Groq, removes the last remaining bear case from its stock. Founded by Jonathan Ross – the architect behind Google’s first tensor processing unit (TPU) – the startup specialises in high-bandwidth, low-latency architectures. The announcement arrives at a time when Nvidia shares have surged to record levels, driven mostly by relentless global demand for AI chips. In a recent CNBC interview, Stacy Rasgon said Nvidia’s spending some $20 billion to acquire Groq’s assets and talents eliminates the only argument sceptics had left: NVDA isn’t a winner in inference. For years, critics have argued that Nvidia’s chips are optimised for training but less competitive in inference.

We recently compiled a list of the 7 Most Promising Robotics Stocks According to Wall Street Analysts. NVIDIA Corporation is one of the most promising stocks. TheFly reported on December 26 that NVDA announced a non-exclusive licensing agreement with AI chip startup Groq. The deal includes bringing Groq’s founder and CEO, Jonathan Ross, President Sunny Madra, and other key engineers to NVDA to integrate Groq’s low-latency inference technology into NVDA’s “AI factory” architecture. Analysts, including Bernstein’s Stacy Rasgon, described the move as a “tech and talent grab” rather than a traditional acquisition. By structuring the transaction as a license instead of a full buyout, NVIDIA Corporation (NASDAQ:NVDA) may reduce antitrust scrutiny.

While media reports suggest a transaction value of around $20 billion, neither NVDA nor Groq has confirmed the exact financial terms. The deal strengthens the business’s position in AI inference technology amid increasing competition from startups and rivals like AMD. NVIDIA Corporation (NASDAQ:NVDA) is a global leader in accelerated computing and AI technologies, headquartered in Santa Clara, California. Best known for its high‑performance GPUs and AI platforms, NVDA’s technology underpins a wide range of applications from data centers and gaming to autonomous machines and robotics. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Bank of America (BofA) believes Nvidia’s (NVDA) recent non-exclusive licensing agreement with Groq is strategic, even if a bit pricey. The analyst said that Groq’s language processing unit is a different kind of hardware than Nvidia's "well-regarded" graphics processing units, as per TheFly. BofA also cited similarities to Nvidia’s 2019 acquisition of Israeli chip designer Mellanox, which now forms the foundation of the American chipmaker’s networking "scaling moat." BofA maintained a ‘Buy’ rating on Nvidia, with a price target of $275 on the company’s shares. On Wednesday, AI startup Groq announced in a blog post that it was entering into a non-exclusive licensing agreement with Nvidia for its inference technology. While the company did not disclose a price, a later report from CNBC pegged the deal value at $20 billion.

As per the deal, Nvidia will onboard Groq’s senior management team, including founder Jonathan Ross and President Sunny Madra ,to assist with advancing and scaling the licensed technology. December 17, 2025 — NVIDIA Corporation (NASDAQ: NVDA) is back in the spotlight as investors weigh two powerful forces moving the AI hardware market in opposite directions: continued expansion in AI infrastructure spending and... Early Wednesday, NVDA traded around $177.72, up about 0.7% on the session after opening near $176.12, with an intraday range roughly $176.48–$178.34. Below is what’s driving NVIDIA stock today, what analysts are forecasting for 2026, and the key risks that could determine whether NVDA breaks out—or stays stuck in consolidation. NVIDIA shares are modestly higher in early trading on December 17, but the day’s most important signals aren’t just in the tape. They’re in the direction of AI infrastructure:

One of the most market-relevant stories for NVIDIA on December 17 centers on OpenAI’s infrastructure strategy—and whether it becomes less NVIDIA-dependent over time.

Nvidia Stock Nvidia S Competitive Moat Just Got Better Analyst Says

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