Nvidia Acquires Groq Technology, Secures 90% Market Share in AI GPUs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16h ago
0mins
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.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 312.00 USD with a low forecast of 236.00 USD and a high forecast of 350.00 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.
38 Analyst Rating
31 Buy
7 Hold
0 Sell
Strong Buy
Current: 325.440
Low
236.00
Averages
312.00
High
350.00
Current: 325.440
Low
236.00
Averages
312.00
High
350.00
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.
