Nvidia Stock Rises as Bernstein Highlights Strategic Value of Groq Licensing Deal

Nvidia shares went up slightly with Bernstein’s renewed confidence in the AI giant. This implies that a deal, which was a bit difficult to follow, has not disturbed the belief of Wall Street in Nvidia’s long-term supremacy.

Bernstein SocGen Group maintained its Outperform rating on Nvidia and a $275 price target after the company’s latest technology-related plans. The endorsement helped lift Nvidia’s stock, which supported the view that investors remain comfortable backing the chipmaker even as it enters the increasingly complex AI ecosystem.

Bernstein’s analysis followed reports that Nvidia was involved in a $20 billion deal with the AI startup Groq. Initially, the news suggested that there was a complete takeover, but Groq later explained that the deal is a non-exclusive license agreement, where Nvidia gets access to its inference technology and not ownership.

Clarifying the Groq Deal

The contract is about the transfer of Groq’s founder, Jonathan Ross, President, Sunny Madra, and a few other key members of the team into Nvidia, while Groq will continue with the new CEO, Simon Edwards, who was the CFO before.

Bernstein interprets this structure as a deliberate move that gives Nvidia the opportunity to acquire the important skills and technology without taking the full operational responsibility for the start-up.

The firm thinks that Nvidia is using its financial muscle to strengthen its position at a time when AI inference is becoming a strategically critical factor as training.

Nvidia is already the king in AI training workloads, but inference is a larger and more competitive market where the winners could be determined by efficiency, architecture, and deployment flexibility, which will ultimately reshape the whole scenario.

Why Bernstein Sees Strategic Value

Bernstein considers the $20 billion price very reasonable, specifically if Groq’s architecture promises significant performance or efficiency advantages that Nvidia can now combine with its own ecosystem.

Access to that technology not only strengthens Nvidia’s product pipeline, but it could also restrict the ability of rivals to distinguish in the areas of inference-heavy workloads.

As AI applications grow in number and diversity, the demand for computing power in the form of inference is anticipated to increase accordingly.

Bernstein sees Nvidia’s bold move to the AI training market as a great possibility for the company to stretch its dominance over the selling of GPUs and to take the next step in the AI monetization process.

Analyst Support Persists

The bullish stance of Bernstein has in fact the support of numerous other analysts from Wall Street. UBS, Stifel and Truist Securities have all kept their Buy-equivalent ratings on Nvidia, along with mentioning the strategic advantages of the Groq partnership and Nvidia’s capability to draw in first-class AI professionals. UBS has set a target price of $235, while Stifel and Truist are more optimistic with targets of $250 and $275, respectively.

Also, with Nvidia’s lately gained momentum, the company has successfully completed the $5 billion private placement with Intel, where it acquired 214.8 million shares of Intel’s common stock.

This deal, which is under a Securities Purchase Agreement, was signed in September 2025, and it further cements Nvidia’s growing power in the semiconductor segment.

Bottom Line

The terms of the contract between Nvidia and Groq are still under wraps, but it looks like the market has already said that Nvidia is still in the good books. With analysts interpreting its recent actions as not only strategic but also planned, the company stays tightly as the critical infrastructure provider in the AI era.

As the demand for inference soars, Nvidia’s enthusiasm to spend lavishly and simply to think long-term, can prove to be its biggest competitive edge.