NVDA Stock Today: December 27 — $20B Groq talent deal stirs antitrust
NVDA stock is in focus after Nvidia agreed a $20B licence-and-talent deal with Groq. Shares of NVDA sit near recent averages as investors weigh antitrust risk and the shift from AI training to inference. The Nvidia Groq deal is non-exclusive and brings founder Jonathan Ross and senior leaders aboard. Street targets sit at $275 to $300 ahead of CES on 5 January. We outline what matters for UK portfolios today, including price levels, catalysts, and risks.
$20B Groq tie-up: what it is
Nvidia will pay $20B to license Groq’s technology while hiring key leaders, including founder Jonathan Ross, in a non-exclusive framework. This structure keeps Groq’s IP available to others, which analysts say could help address antitrust risk. The move aims to speed up Nvidia’s roadmap for AI inference chips and software stacks. See coverage from CNBC and the FT.
AI inference sits at the point where models serve results to users, so cost per query and latency drive demand. NVDA stock benefits if Nvidia lowers total cost of ownership for data centres. Groq’s compiler and pipeline know-how can sharpen throughput and efficiency. That positions Nvidia for rising inference workloads across search, code assist, and customer service at hyperscalers and UK cloud partners.
What the tape says about positioning
At $188.61 with a 52-week range of $86.62 to $212.19, NVDA stock trades near its 50-day average of $185.85. RSI is 59.39, ADX is 13.29, and Stochastic sits at 96, a short-term overbought signal. Bollinger mid sits near $181.34 with the upper band around $191.58. That frames near-term support near $181 to $183 and resistance near $191 to $194.
Nvidia’s PE is 47.16 with net margins above 53%. The Street lists 58 buys or strong buys versus 2 sells, with a consensus price target of $234.73 and a range of $140 to $352. NVDA stock therefore trades at a discount to consensus. Ahead of CES on 5 January, the market wants signs that inference orders can offset training normalisation.
Antitrust risk and the UK angle
The transaction is structured as a non-exclusive licence with talent acquisition, not a full merger. Analysts suggest this keeps competitive options open for customers and rivals, limiting antitrust risk. Still, regulators could seek disclosures if competitive effects grow. See analyst commentary via CNBC for the setup and concerns.
The UK Competition and Markets Authority can review transactions that meet turnover or UK-effects thresholds. While this deal may fly under formal probes today, we will watch any supplier lock-in claims or exclusivity creep. For portfolios, this is about execution pace, not courtroom risk. Monitor hyperscaler adoption, customer feedback, and pricing for AI inference chips.
Catalysts and portfolio implications
CES on 5 January puts the spotlight on inference performance, energy efficiency, and software. We expect messaging around end-to-end stacks that cut latency and cost per token. Any early design wins tied to Groq IP would be supportive for NVDA stock. Watch commentary from major cloud customers and system builders that ship into UK and European data centres.
Given valuation, position sizing matters. Consider a staged approach around moving averages and the $181 to $194 band referenced by volatility tools. For growth accounts, upside skew improves if inference unit growth stays strong. For cautious mandates, use guardrails and review sterling moves versus USD, since FX shifts affect returns on US holdings for UK investors.
Final Thoughts
The Nvidia Groq deal adds talent and IP without the weight of a merger, which helps mute antitrust risk while targeting the next leg of AI growth: inference. For NVDA stock, the near-term playbook is clear. Track CES updates on throughput, latency, and total cost of ownership. Watch whether hyperscalers confirm larger inference orders. Use the $181 to $194 zone to plan entries and trims, with awareness of GBPUSD effects on returns. If execution accelerates and regulation stays quiet, the Street’s $234.73 consensus remains reachable in 2025. Keep position sizes disciplined and reassess after CES disclosures.
FAQs
Nvidia agreed to pay $20B to license Groq’s AI technology and to hire key Groq leaders, including founder Jonathan Ross. It is non-exclusive, so Groq’s technology can still be used by others. The goal is to improve Nvidia’s AI inference performance and efficiency without pursuing a full merger that could draw tougher antitrust scrutiny.
Investors will watch CES announcements, inference benchmarks, and any early design wins using Groq IP. If Nvidia shows lower cost per query and strong cloud demand, sentiment can lift. Technicals flag a range around $181 to $194. Clear guidance on inference orders would be the biggest upside catalyst.
Risk exists, but it is reduced by the non-exclusive structure and the absence of a full merger. Regulators could still ask questions if customer choice narrows over time. We will monitor any CMA or US agency commentary, especially if supplier contracts start to look restrictive for rivals or customers.
Focus on execution in AI inference, CES signals, and hyperscaler demand. Manage FX exposure because returns translate back into pounds. Consider staged entries and disciplined position sizes. Revisit targets after CES and earnings. Keep an eye on any regulatory updates that could change competitive dynamics or supply agreements.
Yes. The consensus target is $234.73, with a range from $140 to $352, and a skew toward buy ratings. That implies upside from recent levels if inference growth delivers. However, valuation is rich, so execution on throughput, latency, and cost metrics remains essential to sustain target credibility.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
