Analyst sets Nvidias (NVDA) share price after $20B Groq deal

Published: Friday, December 26, 2025 at 3:57 pm

Nvidia Stock Climbs Following Deal with AI Firm Groq

Nvidia (NVDA) shares are trading higher today, surpassing $190, driven by a recently announced agreement with artificial intelligence (AI) company Groq. The deal, expected to fuel Nvidia's growth in the coming year, has prompted analysts to revise their price targets for the company's stock.

Rosenblatt Securities analyst Stacy Rasgon has reiterated a positive outlook on the chipmaker, setting a new Nvidia price target of $245. This target reflects the analyst's confidence in Nvidia's leadership within the AI sector. The non-exclusive licensing agreement, which covers Groq's inference technology, is seen as a significant positive catalyst. As part of the agreement, several senior Groq executives will be joining Nvidia.

The deal is viewed as strategically important for Nvidia. The analyst suggests the agreement could alleviate investor concerns regarding potential competition from Alphabet's Tensor Processing Units (TPUs). The licensing of inference technology is considered crucial for Nvidia, particularly as AI expands into the inference stage.

Rasgon's new price target suggests a potential 30% increase from current levels. While this target is slightly below the average 12-month Nvidia price target of $263.58, it still indicates substantial growth potential, according to analysis from multiple analysts. The agreement is expected to help extend Groq's Language Processing Unit (LPU) through Nvidia's CUDA software ecosystem, further solidifying Nvidia's competitive advantage in the AI market. Nvidia management has not yet commented publicly on the agreement.

BNN's Perspective:

The deal between Nvidia and Groq appears to be a smart strategic move. It not only strengthens Nvidia's position in the AI market but also addresses potential competitive threats. While the market is optimistic, investors should remain cautious and consider the broader economic landscape before making investment decisions.

Keywords: Nvidia, NVDA, Groq, AI, stock price, analyst, Rosenblatt Securities, Stacy Rasgon, price target, licensing agreement, inference technology, CUDA, Alphabet, TPU, LPU, chipmaker, investment

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