Nvidia Acquires Groq for $20 Billion to Strengthen AI Inferencing Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: NASDAQ.COM
- Market Leadership: Nvidia has excelled in the AI boom, with its latest fiscal year revenue exceeding $130 billion, demonstrating its strong competitive position in the AI chip market and its potential to continue leading industry developments.
- Strategic Acquisition: Nvidia's $20 billion acquisition of start-up Groq aims to integrate its low-latency processors to enhance AI inferencing capabilities, thereby boosting product competitiveness and addressing market competition.
- Growth Potential: The AI inferencing market is currently valued at approximately $103 billion and is projected to reach $255 billion by 2032, with Nvidia's acquisition positioning it favorably in this rapidly growing sector.
- Technology Integration: Executives from Groq will join Nvidia's team to facilitate the integration of new technology, further advancing Nvidia's innovation capabilities in AI inferencing and real-time workloads.
NVDA
$188.22+Infinity%1D
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 190.530
Low
185.00
Averages
255.63
High
352.00
Current: 190.530
Low
185.00
Averages
255.63
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
