Nvidia’s $20B Groq Bet Fuels Bold Analyst Targets

Nvidia ( (NVDA) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Nvidia is quietly expanding its AI empire, and Wall Street is doubling down on the stock. The company has struck a non-exclusive licensing deal with private startup Groq that could be worth up to $20 billion, giving Nvidia access to Groq’s high-speed AI inference technology based on LPUs (language processing units). Groq’s CEO, Jonathan Ross, a former Google TPU architect, will join Nvidia, strengthening its in-house ASIC and inference expertise. Top analysts at BofA and Baird reaffirmed bullish ratings after the news, arguing that the deal positions Nvidia for the next phase of AI, where running models (inference) will grow faster than training them. The move complements Nvidia’s dominant GPU and CUDA software stack and broadens its hardware options for customers.

At the same time, analysts continue to see meaningful upside for Nvidia’s stock over the next couple of years. Wedbush’s Dan Ives projects a base-case NVDA price of around $250 by the end of 2026, while Evercore and Tigress have Street-high targets of roughly $350, betting that Nvidia will remain at the center of the global AI buildout. A recent U.S. green light for exports of Nvidia’s H200 AI chips to China is viewed as another key growth catalyst, potentially reopening a crucial market. Consensus on Wall Street remains firmly bullish: NVDA carries a Strong Buy rating, with an average price target near $263.58, implying almost 40% upside from current levels, even after the stock has already gained about 40% year-to-date. For investors, Nvidia is increasingly seen as the core, lower-risk way to play the AI boom—albeit one where expectations are very high and any slowdown in AI spending or competitive pressure could trigger sharp swings in the share price.