Nvidia Buy Rating Reinforced by Groq Licensing Deal and Expanding AI Inference Demand

Nvidia, the Technology sector company, was revisited by a Wall Street analyst on December 26. Analyst Atif Malik from Citi maintained a Buy rating on the stock and has a $270.00 price target.

Atif Malik has given his Buy rating due to a combination of strategic, technological, and market-demand factors that reinforce Nvidia’s leadership in AI infrastructure. He highlights that the nonexclusive $20bn licensing agreement with Groq, alongside the addition of Groq’s founder and president to Nvidia, deepens Nvidia’s capabilities in specialized inference architectures, which are critical for real‑time and cost‑efficient AI workloads. Structuring the deal as a licensing arrangement rather than a full acquisition is viewed as a pragmatic way to capture Groq’s technology advantages while reducing potential regulatory hurdles and preserving Groq’s operational independence.
Malik also points to a powerful demand backdrop, noting that hyperscale cloud providers such as AWS and Google are driving toward increasingly large‑context, inference‑heavy AI applications and signaling ambitions to expand AI compute at a rapid pace. Nvidia’s Rubin CPX GPU, with its focus on cost-efficient memory and inference workloads, positions the company to benefit from this trend, and Groq’s inference‑only LPUs further enhance Nvidia’s offerings for ultra‑low latency language model serving. By integrating Groq’s IP into its roadmap, Nvidia can accelerate its build-out of inference‑optimized compute stacks without incurring the time and risk of developing comparable technology from scratch, supporting Malik’s positive view and Buy rating on the stock.

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.