University of Kwazulu-Natal

Nvidia What Should Investors Make Of The Groq Deal Rating Upgrade

Bonisiwe Shabane
-
nvidia what should investors make of the groq deal rating upgrade

Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement NEW YORK, Dec. 28, 2025, 12:29 p.m. ET — Market closed Wall Street is shut for the weekend, but AI stocks are not taking a break in the headlines.

With the S&P 500 hovering near record territory after a quiet, low-volume post-Christmas session, investors are heading into the final trading days of 2025 weighing two powerful—and conflicting—narratives: the continued buildout of AI infrastructure... Reuters+2Reuters+2 The past 24–48 hours have delivered a fresh catalyst at the center of the AI trade: Nvidia’s non-exclusive licensing agreement with AI inference-chip startup Groq, paired with key executive hires—an unusual “deal without an... Reuters+2Groq+2 At the same time, a prominent bear has returned to the conversation. Michael Burry—made famous by “The Big Short”—has renewed attention with a bearish wager against AI bellwethers Nvidia and Palantir, describing the space as bubble-like and echoing concerns that the market’s AI enthusiasm has outrun...

The Wall Street Journal With markets closed today, the key question for investors isn’t what AI stocks did intraday—it’s what might matter before the next opening bell on Monday, Dec. 29: how futures trade tonight, what the macro calendar looks like in a holiday-shortened week, and which AI names have catalysts (or risks) that could drive the next sharp move. Investopedia+2New York Stock Exchange+2 Nvidia’s $20B deal with Groq AI could reshape the AI chip market, impact Groq stock, and redefine real-time AI performance. Learn what this means for investors and technology

Breaking news: Nvidia has made headlines with a massive $20 billion deal involving Groq, the AI chip startup. This strategic move is already sending ripples through the tech world, investors, and AI enthusiasts alike. Here’s why this matters to everyone — from casual tech users to market watchers. Nvidia will license Groq’s AI chip technology and bring key founders, including Jonathan Ross and Sunny Madra, onto its team. This arrangement strengthens Nvidia’s AI portfolio without fully acquiring Groq, allowing the startup to continue its operations independently. The deal is valued at roughly $20 billion, a landmark figure that could reshape Nvidia’s future in real-time AI and inference technology.

Groq builds high-speed AI inference chips, designed to process real-time workloads like large language models (LLMs) faster than traditional GPUs. A $20 billion licensing move reshapes the AI chip race, avoids antitrust scrutiny, and leaves many employees on the hook. Nvidia structured a $20 billion licensing deal to gain Groq’s inference chips and hire key engineers without formally acquiring the company. The move strengthens Nvidia’s position in inference, sidesteps potential antitrust review, and risks leaving many rank-and-file employees without equity payouts common in acquisitions. Most of us missed it over the holidays. Nvidia quietly spent $20 billion to license Groq’s tech and hire its leaders.

It’s big for chips and bigger for who wins in AI. On Christmas Eve Nvidia agreed to pay $20 billion to license Groq’s language processing unit technology and to bring key leaders, including founder Jonathan Ross, onto Nvidia’s team. Groq will remain an independent company on paper with a new CEO. Nvidia calls this a non-exclusive licensing deal, not an acquisition. That distinction is crucial. Groq’s chips are built specifically for text generation, also called inference.

They can run certain models far faster and with far less energy than general purpose GPUs. That makes them attractive as large models move from research labs into real-time use. It's been two days since news broke that Nvidia was spending $20 billion to acquire top talent from Groq in what the chip startup called a "non-exclusive licensing agreement." Nvidia, the world's most valuable company, hasn't issued a press release or regulatory filing and, according to a spokesperson, is only confirming the contents of Groq's 90-word blog post published after the close of... "They're so big now that they can do a $20 billion deal on Christmas Eve with no press release and nobody bats an eye," said Stacy Rasgon, an analyst at Bernstein, in a Friday... While neither company confirmed the price tag, CNBC learned from Groq lead investor Alex Davis on Wednesday that Nvidia had agreed to buy assets from Groq, a designer of high-performance artificial intelligence accelerator chips,...

Davis' firm, Disruptive, has invested more than half a billion dollars in Groq and led the startup's latest financing round in September at a $6.9 billion valuation. Groq founder and CEO Jonathan Ross along with Sunny Madra, the company's president, and other senior leaders "will join Nvidia to help advance and scale the licensed technology," the startup said in the post,...

People Also Search

Daily Stocks & Crypto Headlines, Free To Your Inbox By

Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement NEW YORK, Dec. 28, 2025, 12:29 p.m. ET — Market closed Wall Street is shut for the weekend, but AI stocks are not taking a break in the headlines.

With The S&P 500 Hovering Near Record Territory After A

With the S&P 500 hovering near record territory after a quiet, low-volume post-Christmas session, investors are heading into the final trading days of 2025 weighing two powerful—and conflicting—narratives: the continued buildout of AI infrastructure... Reuters+2Reuters+2 The past 24–48 hours have delivered a fresh catalyst at the center of the AI trade: Nvidia’s non-exclusive licensing agreement w...

The Wall Street Journal With Markets Closed Today, The Key

The Wall Street Journal With markets closed today, the key question for investors isn’t what AI stocks did intraday—it’s what might matter before the next opening bell on Monday, Dec. 29: how futures trade tonight, what the macro calendar looks like in a holiday-shortened week, and which AI names have catalysts (or risks) that could drive the next sharp move. Investopedia+2New York Stock Exchange+...

Breaking News: Nvidia Has Made Headlines With A Massive $20

Breaking news: Nvidia has made headlines with a massive $20 billion deal involving Groq, the AI chip startup. This strategic move is already sending ripples through the tech world, investors, and AI enthusiasts alike. Here’s why this matters to everyone — from casual tech users to market watchers. Nvidia will license Groq’s AI chip technology and bring key founders, including Jonathan Ross and Sun...

Groq Builds High-speed AI Inference Chips, Designed To Process Real-time

Groq builds high-speed AI inference chips, designed to process real-time workloads like large language models (LLMs) faster than traditional GPUs. A $20 billion licensing move reshapes the AI chip race, avoids antitrust scrutiny, and leaves many employees on the hook. Nvidia structured a $20 billion licensing deal to gain Groq’s inference chips and hire key engineers without formally acquiring the...