Wall Street Reacts to Nvidia’s Groq Deal

Wall Street analysts offered a range of reactions after Nvidia (NASDAQ: NVDA) moved to acquire Groq’s technology and key personnel, in a deal widely reported to be valued at about $20 billion. 

The agreement, struck on Christmas Eve, involves a non-exclusive licensing arrangement for Groq’s inference technology, while several senior figures from the startup, including founder Jonathan Ross, are set to join Nvidia.

Bernstein described the move as less a conventional acquisition and more a targeted effort to secure both technology and specialised talent. 

The firm said the deal appears to be a strategic use of Nvidia’s financial strength to reinforce its position across crucial parts of the AI ecosystem. Bernstein rates the shares Outperform with a $275 price target.

Wells Fargo called it a “very interesting strategic move,” noting that although details remain limited, the agreement underscores Nvidia’s ambition to advance next-generation, inference-optimised computing. 

The bank highlighted that investor attention is likely to intensify as more information emerges. Wells maintains an Overweight rating and a $265 target.

Cantor Fitzgerald argued the deal strengthens Nvidia on both offensive and defensive fronts. 

The firm said integrating Groq’s low-latency, energy-efficient inference technology could widen Nvidia’s share in real-time AI workloads, such as robotics and autonomous systems. Cantor reaffirmed Nvidia as a top pick with a $300 price target.

Bank of America described the pact as “expensive but strategic,” comparing the long-term potential to Nvidia’s Mellanox acquisition, which later became central to its networking advantage. The bank kept its Buy rating and $275 target.