Nvidia Buy Rating Backed by Strategic Groq Deal and Vera Rubin Platform Driving Next-Gen AI Infrastructure Leadership

Stifel Nicolaus analyst Ruben Roy has maintained their bullish stance on NVDA stock, giving a Buy rating today.

Ruben Roy has given his Buy rating due to a combination of factors tied to Nvidia’s strengthening AI infrastructure position and strategic technology acquisition. He highlights that the non-exclusive licensing deal with Groq brings advanced inference technology and key engineering talent into Nvidia, enhancing its ability to address evolving AI workloads without disrupting Groq’s independent operations. The reported multi-billion-dollar value of the transaction underscores the strategic importance of this agreement, and its structure is viewed as consistent with Nvidia’s broader strategy of selectively acquiring critical technologies to reinforce its platform.

Roy also points to the forthcoming Vera Rubin platform as a core driver of his positive stance, noting that the modular architecture—spanning CPUs, GPUs, networking, and accelerators—can be tailored to different AI tasks. Integrating Groq’s SRAM-based LPU into this ecosystem is expected to improve performance metrics such as tokens per dollar and tokens per watt, particularly for latency-sensitive inference and speculative decode use cases. He believes that Groq’s next-generation LPU, likely produced on a leading-edge 4nm process and paired with Rubin CPX for long-context inference, could further extend Nvidia’s leadership in AI infrastructure. Collectively, these factors support his view that Nvidia remains well positioned to capture incremental demand as AI workloads shift and expand, justifying a Buy recommendation.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $275.00 price target.

Based on the recent corporate insider activity of 132 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.