Nvidia: What Should Investors Make Of The Groq Deal (Rating Upgrade) (NASDAQ:NVDA)

Nvidia: What Should Investors Make Of The Groq Deal (Rating Upgrade) Summary Nvidia plans to acquire Groq's assets for $20 billion, targeting AI inference leadership and addressing GPU limitations for specific workloads. The deal structure secures Groq's LPU technology and key personnel while avoiding a prolonged process, reflecting urgency amid rapid AI sector evolution. Nvidia's data center revenues surged to $51.2B last quarter, with gross margins at 73.6% and Q4 guidance signaling further acceleration. With expectations now more realistic, I upgrade Nvidia to 'Buy' and set a $245 price target, implying 30% upside. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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