NVIDIA Corporation (NVDA) To Make its Largest Purchase From Groq

NVIDIA Corporation (NASDAQ:NVDA) is among the Best Performing Quantum Computing Stocks in 2025. On December 24, CNBC reported that NVIDIA Corporation (NASDAQ:NVDA) will be making its largest purchase ever from a startup called Groq. The report noted that the tech giant will be buying high-performance AI acceleration chips worth around $20 billion in cash from Groq.

The 9-year old chip startup, Groq, on Wednesday noted that it has entered into a non-definitive agreement with Nvidia. However, Simon Edwards, CEO of Groq, noted that they will continue to operate as an independent company. The report highlighted Nvidia CEO Jensen Huang said that this purchase will help the company expand its capabilities. He also noted that NVIDIA Corporation (NASDAQ:NVDA) plans to integrate Groq’s low-latency processors into the NVIDIA AI factory architecture.

Wall Street has a positive outlook on the stock after this unusual update from Nvidia. On December 26, Vivek Arya from Bank of America Securities reiterated a Buy rating on the stock with a $275 price target. On the same day, C J Muse from Cantor Fitzgerald also reiterated a Buy rating on the stock with a price target of $300.

​NVIDIA Corporation (NASDAQ:NVDA) designs and sells specialized processors, initially for gaming but now also crucial for AI, data centers, professional visualization, and the automotive industry. It developed the graphics processing unit (GPU) and the CUDA parallel computing platform, which allows its GPUs to perform tasks beyond graphics.

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.

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Disclosure: None. This article is originally published at Insider Monkey.