Analysts Call NVIDIA Corporation (NVDA) Groq Deal a 'Tech and Talent Grab'

We recently compiled a list of the 7 Most Promising Robotics Stocks According to Wall Street Analysts. NVIDIA Corporation is one of the most promising stocks.

TheFly reported on December 26 that NVDA announced a non-exclusive licensing agreement with AI chip startup Groq. The deal includes bringing Groq’s founder and CEO, Jonathan Ross, President Sunny Madra, and other key engineers to NVDA to integrate Groq’s low-latency inference technology into NVDA’s “AI factory” architecture.

Analysts, including Bernstein’s Stacy Rasgon, described the move as a “tech and talent grab” rather than a traditional acquisition. By structuring the transaction as a license instead of a full buyout, NVIDIA Corporation (NASDAQ:NVDA) may reduce antitrust scrutiny. While media reports suggest a transaction value of around $20 billion, neither NVDA nor Groq has confirmed the exact financial terms. The deal strengthens the business’s position in AI inference technology amid increasing competition from startups and rivals like AMD.

NVIDIA Corporation (NASDAQ:NVDA) is a global leader in accelerated computing and AI technologies, headquartered in Santa Clara, California. Best known for its high‑performance GPUs and AI platforms, NVDA’s technology underpins a wide range of applications from data centers and gaming to autonomous machines and robotics.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.