NVIDIA Corp. (NASDAQ:NVDA) shares climbed to $190.16 in overnight trading on Robinhood, gaining 0.82%, following Wednesday’s announcement of a non-exclusive licensing agreement with AI chip startup Groq.
Check out the current price of NVDA stock here.
$20.6 Billion Cash Deal Confirmed
Groq, which was founded in 2016, has entered a non-exclusive licensing agreement with NVIDIA covering its inference technology.
According to Alex Davis, CEO of Disruptive, NVIDIA agreed to buy assets from Groq for $20 billion in cash.
Disruptive is a Dallas-based growth investment firm and a major investor in Groq.
Leadership Transition And Operations
Groq founder and CEO Jonathan Ross will join NVIDIA to integrate the licensed technology.
Ross confirmed the collaboration on X, emphasizing its role in scaling AI processing solutions.
Market Context
The deal follows Groq’s $750 million funding round earlier in September, backed by investors including Samsung Electronics Co. (OTC:SSNLF) and Cisco Systems (NASDAQ:CSCO).
In December, analysts remained bullish on Nvidia, with Morgan Stanley (NYSE:MS) maintaining an Overweight rating and a $250 price target, reflecting continued confidence in the company’s AI‑driven growth outlook.
Over the past 12 months, Nvidia has gained 34.79%, reflecting a strong upward trend.
The large-cap tech company has a market capitalization of $4.58 trillion, with its 52-week trading range spanning $86.63 to $212.19.
Benzinga’s Edge Stock Rankings highlight NVDA stock has a Quality score of 97.89. Here is how the stock fares on other parameters.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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