Nvidia Acquires Groq Technology, Secures 90% Market Share in AI GPUs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Should l Buy GOOGL?
Source: Fool
- Market Dominance: Nvidia has achieved approximately 90% market share in the GPU sector, leveraging its CUDA software platform to optimize AI code, which ensures continued growth in AI data center buildouts and further solidifies its industry leadership.
- Strategic Acquisition: Nvidia made its largest deal ever by acquiring technology and most employees from chipmaker Groq, whose AI inference-specific chips will enhance Nvidia's GPU dominance in the AI training market, driving future growth.
- Pricing Advantage: With a forward P/E ratio below 25 and a PEG ratio under 0.7, Nvidia's stock remains attractively priced, indicating a favorable balance between valuation and growth opportunities.
- Competitive Edge: By keeping the Slurm open-source software accessible, Nvidia is expanding its software moat within the AI ecosystem, thereby enhancing its competitive position in the AI infrastructure market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 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.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 322.860
Low
279.00
Averages
338.25
High
390.00
Current: 322.860
Low
279.00
Averages
338.25
High
390.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
Tech Stocks: Capital Appreciation and Dividends
- Micron's Remarkable Growth: Micron Technology's stock surged 317% over the past year, with a modest dividend yield of 0.12%, yet its $42.3 billion revenue and improving fundamentals make it a focal point for investors, especially as it plays a crucial role in the AI revolution's data center buildout.
- Alphabet's Strong Performance: Alphabet's revenue rose 15% in 2025, marking its largest increase in four years, with a net income margin reaching 33%; despite a 0.3% dividend yield, the 69% stock price increase underscores its robust market performance and competitiveness in the AI sector.
- Alibaba's Potential: Alibaba leads with a 0.65% dividend yield among these stocks, and while its earnings multiple is high, its position as an e-commerce giant in China and potential AI chip supplier could enhance its appeal, especially amid ongoing U.S.-China trade restrictions.
- Investor Confidence: Despite the lackluster dividend performance of these three companies, their capital appreciation potential and market leadership position them as attractive investment opportunities, particularly against the backdrop of rapid advancements in technology and AI.
See More
Big Tech Faces Funding Crisis Amid AI Spending Surge
- Funding Shortages: Amazon expects to generate about $180 billion in operating cash this year against a capital spending plan of $200 billion, resulting in a $20 billion shortfall, marking the company's first entry into deficit territory which could impact future investment capabilities.
- Meta's Cash Flow Crisis: Meta anticipates operating cash flow of approximately $130 billion, while its capital spending guidance peaks at $135 billion, indicating significant financial pressure in building AI systems that may lead to depletion of cash reserves.
- Increased Debt Financing: Oracle raised $25 billion in bonds to support a $300 billion infrastructure deal with OpenAI, while Meta raised $30 billion last year, with tech companies expected to issue $337 billion in investment-grade bonds this year, reflecting the industry's urgent need for funding.
- Infrastructure Investment Risks: Big Tech firms are heavily investing in data centers and power facilities, yet the irreversibility of these infrastructures poses substantial financial risks, especially if AI demand does not grow as anticipated, potentially leading to massive depreciation and debt burdens.
See More
Alphabet Plans to Raise Funds via Bond Market for AI Expansion
- Funding Initiative: Alphabet announced its intention to raise funds through the bond market to support its artificial intelligence expansion, with Bloomberg reporting an expected raise of approximately $15 billion, which will provide essential capital for future tech investments.
- Increased Capital Expenditure: The company plans to allocate between $175 billion and $185 billion for capital spending in 2026, demonstrating a strong commitment to AI investments aimed at enhancing its overall technological competitiveness.
- Market Reaction: Alphabet's shares dipped slightly in premarket trading, reflecting investor concerns over the high capital expenditure plans, which may impact shareholder confidence in the short term.
- Industry Impact: As Alphabet ramps up its AI investments, it is expected to have a profound effect on the entire industry, particularly in its competition with rivals like Nvidia, potentially reshaping the market landscape.
See More
Seattle Seahawks Win Super Bowl, Dow Surpasses 50,000
- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
OpenAI CEO Reports ChatGPT Exceeds 10% Monthly Growth
- User Growth Resurgence: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT's monthly growth rate has exceeded 10%, indicating a recovery in user demand that is expected to further drive the company's market share and revenue growth.
- New Model Launch: Altman stated that OpenAI plans to launch an updated ChatGPT model this week, which will enhance its product competitiveness, especially in the face of pressure from rivals like Anthropic.
- Strong Codex Performance: OpenAI's coding product Codex grew approximately 50% over the past week, demonstrating increased market acceptance and potentially eroding market share from competitors like Claude Code.
- Ad Testing Initiation: OpenAI will begin testing ads within ChatGPT on Monday; although ad revenue is expected to account for less than half of total revenue in the long term, this initiative could provide new revenue streams and enhance the company's financial stability.
See More
Seattle Seahawks Win Super Bowl with 29-13 Victory
- Market Surge: The Dow Jones Industrial Average soared over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating strong investor confidence despite a slight dip in futures trading this morning.
- Super Bowl Advertising Boom: NBC's 30-second ad spots averaged $8 million, with some exceeding $10 million, showcasing fierce competition in the advertising market as AI companies heavily invested in the event, highlighting the importance of brand visibility.
- Legal Action Intensifies: Novo Nordisk is suing Hims & Hers over its copycat weight-loss pills, leading Hims to announce the withdrawal of its product, resulting in a pre-market stock drop of over 20%, reflecting market sensitivity to legal risks.
- Meta Faces Major Trials: Meta is set to face two significant lawsuits in New Mexico and Los Angeles regarding the protection of child users and the mental health impacts on young users, which could have profound implications for its business and the social media industry.
See More
Tech Stocks: Capital Appreciation and Dividends
- Micron's Remarkable Growth: Micron Technology's stock surged 317% over the past year, with a modest dividend yield of 0.12%, yet its $42.3 billion revenue and improving fundamentals make it a focal point for investors, especially as it plays a crucial role in the AI revolution's data center buildout.
- Alphabet's Strong Performance: Alphabet's revenue rose 15% in 2025, marking its largest increase in four years, with a net income margin reaching 33%; despite a 0.3% dividend yield, the 69% stock price increase underscores its robust market performance and competitiveness in the AI sector.
- Alibaba's Potential: Alibaba leads with a 0.65% dividend yield among these stocks, and while its earnings multiple is high, its position as an e-commerce giant in China and potential AI chip supplier could enhance its appeal, especially amid ongoing U.S.-China trade restrictions.
- Investor Confidence: Despite the lackluster dividend performance of these three companies, their capital appreciation potential and market leadership position them as attractive investment opportunities, particularly against the backdrop of rapid advancements in technology and AI.
See More
Big Tech Faces Funding Crisis Amid AI Spending Surge
- Funding Shortages: Amazon expects to generate about $180 billion in operating cash this year against a capital spending plan of $200 billion, resulting in a $20 billion shortfall, marking the company's first entry into deficit territory which could impact future investment capabilities.
- Meta's Cash Flow Crisis: Meta anticipates operating cash flow of approximately $130 billion, while its capital spending guidance peaks at $135 billion, indicating significant financial pressure in building AI systems that may lead to depletion of cash reserves.
- Increased Debt Financing: Oracle raised $25 billion in bonds to support a $300 billion infrastructure deal with OpenAI, while Meta raised $30 billion last year, with tech companies expected to issue $337 billion in investment-grade bonds this year, reflecting the industry's urgent need for funding.
- Infrastructure Investment Risks: Big Tech firms are heavily investing in data centers and power facilities, yet the irreversibility of these infrastructures poses substantial financial risks, especially if AI demand does not grow as anticipated, potentially leading to massive depreciation and debt burdens.
See More
Alphabet Plans to Raise Funds via Bond Market for AI Expansion
- Funding Initiative: Alphabet announced its intention to raise funds through the bond market to support its artificial intelligence expansion, with Bloomberg reporting an expected raise of approximately $15 billion, which will provide essential capital for future tech investments.
- Increased Capital Expenditure: The company plans to allocate between $175 billion and $185 billion for capital spending in 2026, demonstrating a strong commitment to AI investments aimed at enhancing its overall technological competitiveness.
- Market Reaction: Alphabet's shares dipped slightly in premarket trading, reflecting investor concerns over the high capital expenditure plans, which may impact shareholder confidence in the short term.
- Industry Impact: As Alphabet ramps up its AI investments, it is expected to have a profound effect on the entire industry, particularly in its competition with rivals like Nvidia, potentially reshaping the market landscape.
See More
Seattle Seahawks Win Super Bowl, Dow Surpasses 50,000
- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
OpenAI CEO Reports ChatGPT Exceeds 10% Monthly Growth
- User Growth Resurgence: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT's monthly growth rate has exceeded 10%, indicating a recovery in user demand that is expected to further drive the company's market share and revenue growth.
- New Model Launch: Altman stated that OpenAI plans to launch an updated ChatGPT model this week, which will enhance its product competitiveness, especially in the face of pressure from rivals like Anthropic.
- Strong Codex Performance: OpenAI's coding product Codex grew approximately 50% over the past week, demonstrating increased market acceptance and potentially eroding market share from competitors like Claude Code.
- Ad Testing Initiation: OpenAI will begin testing ads within ChatGPT on Monday; although ad revenue is expected to account for less than half of total revenue in the long term, this initiative could provide new revenue streams and enhance the company's financial stability.
See More
Seattle Seahawks Win Super Bowl with 29-13 Victory
- Market Surge: The Dow Jones Industrial Average soared over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating strong investor confidence despite a slight dip in futures trading this morning.
- Super Bowl Advertising Boom: NBC's 30-second ad spots averaged $8 million, with some exceeding $10 million, showcasing fierce competition in the advertising market as AI companies heavily invested in the event, highlighting the importance of brand visibility.
- Legal Action Intensifies: Novo Nordisk is suing Hims & Hers over its copycat weight-loss pills, leading Hims to announce the withdrawal of its product, resulting in a pre-market stock drop of over 20%, reflecting market sensitivity to legal risks.
- Meta Faces Major Trials: Meta is set to face two significant lawsuits in New Mexico and Los Angeles regarding the protection of child users and the mental health impacts on young users, which could have profound implications for its business and the social media industry.
See More
