NVDA Stock Today: December 24 – Licenses Groq Tech amid $20B Chatter
The Nvidia Groq deal took centre stage on 24 December, with Nvidia licensing Groq’s low‑latency inference tech and planning to hire founder Jonathan Ross and key staff. For Australian investors, this points to faster real-time AI across finance, telco, and health. NVDA stock traded at US$188.61, down 0.32%, keeping gains intact this quarter. While CNBC flagged unconfirmed US$20 billion assets chatter, the confirmed licence targets inference workloads, the next growth leg after training. We break down what is known, the stock setup, and what it means for portfolios in Australia.
What the Groq license means for inference
Nvidia gains access to Groq’s compiler and low-latency inference approach, designed to return answers in milliseconds at high tokens per second. This complements Nvidia’s CUDA, TensorRT, and networking stack. The Nvidia Groq deal is non-exclusive, which limits concentration risk and preserves ecosystem flexibility. Hiring Jonathan Ross and engineers strengthens Nvidia’s software depth, a key edge as inference scales from pilots to production across cloud and on-prem.
Real-time AI drives user experience. Trading, fraud checks, call centres, and in-car systems depend on sub-second responses. Groq’s design focuses on predictable latency and throughput, while Nvidia’s GPUs deliver broad workload support. Together, the Nvidia Groq deal aims to sharpen response times without sacrificing model choice. That mix could widen Nvidia’s moat in inference chips as enterprise buyers demand both speed and flexibility.
Nvidia already leads training with H100, H200 and networking. Inference is more cost-sensitive and latency-bound. The Nvidia Groq deal slots into TensorRT-LLM, CUDA graphs, and NVLink systems to optimise serving. If Ross helps streamline compilers and scheduling, customers could see lower per-query costs and steadier latency. That would support higher utilisation, better total cost of ownership, and stronger attach rates for software licenses.
$20B chatter vs confirmed facts
Nvidia has a non-exclusive licensing agreement and plans to hire Groq’s founder and staff. TechCrunch reported the licence and hires, noting that this is not a full company acquisition at this stage source. Mashable also framed the move around licensing Groq’s tech to bolster inference capability source.
CNBC reported chatter about a possible US$20 billion purchase of Groq assets, but no binding deal was disclosed at the time of writing. The Nvidia Groq deal, as confirmed, is about licensing and hiring. Investors should treat the US$20 billion figure as speculative until Nvidia files or comments formally.
If a large asset purchase emerges, expect regulatory review on competition in AI inference chips. Non-exclusive licensing reduces concern, yet deeper asset transfers can draw scrutiny. We will watch disclosures, staffing transitions, and any impact on suppliers. For Australian funds, clarity on transaction scope will shape risk, especially for ETFs with overweight positions in mega-cap AI.
NVDA stock today and valuation check
NVDA stock closed at US$188.61, down 0.32% on the day, after trading between US$186.59 and US$188.91. RSI at 57.3 is neutral, ADX at 13 signals no strong trend, and the MACD histogram turned positive. Price sits near the upper Bollinger Band at US$188.67, while CCI at 116 screens overbought. Near term, pullbacks to the mid-band around US$180 could offer better entries.
At a 46.6x P/E and about 24.5x sales, valuation assumes durable AI growth. Street targets cluster around US$232.5 median and US$234.7 consensus. Analyst split is strong, with 55 Buys, 2 Strong Buys, 1 Hold, and 1 Sell. The Nvidia Groq deal could lift inference monetisation, but execution and margins on serving workloads will drive multiples.
Net margin is about 53%, operating margin near 59%, ROE around 104%, and current ratio 4.47. Debt-to-equity is 0.09, with a token dividend yield near 0.02%. Free cash flow per share is US$3.18. The next earnings date is 25 February 2026 (UTC). Model estimates point to US$307.88 in three years and US$428.90 in five, assuming sustained AI demand.
What this means for Australian investors
Banks, telcos, and healthcare in Australia need fast inference for fraud, call routing, document parsing, and imaging. The Nvidia Groq deal signals better latency and lower cost per query, which should help real-time AI adoption. That can support spend on GPUs, networking, and software, with flow-on effects for local cloud regions and enterprise integrators.
NVDA remains a high-beta AI core holding. For AUD-based investors, consider currency when sizing. Dollar-cost averaging can smooth volatility. Exposure can come via direct US holdings or diversified funds. We prefer staggered buys near technical support zones, while keeping cash ready if confirmation on any large asset purchase changes risk.
Key risks include regulatory review if asset deals expand, supply chain tightness, competitive responses in AI inference chips, and macro slowdowns that delay enterprise rollouts. Technicals show mild overbought readings. If momentum fades, re-tests of moving averages are likely. The Nvidia Groq deal helps strategy, but investors should not over-weight a single catalyst.
Final Thoughts
Our take: the Nvidia Groq deal improves Nvidia’s hand in real-time inference by pairing low-latency methods with Nvidia’s mature software and systems. Hiring Jonathan Ross should speed compiler and serving gains, which can lower per-query costs and support margins. For Australian investors, we see a constructive medium-term setup, but today’s neutral momentum and rich multiples argue for staged entries. Watch for formal filings on any US$20 billion asset move, latency benchmarks tied to TensorRT-LLM, and customer proof points in finance and telco. Use pullbacks toward support to add, size with currency in mind, and avoid chasing into short-term overbought prints.
FAQs
Nvidia confirmed a non-exclusive licence to use Groq’s low-latency inference tech and plans to hire founder Jonathan Ross and other staff. There is no confirmed full acquisition. Reports of a US$20 billion assets purchase remain unverified. We expect clarity through formal disclosures or regulatory filings, if any broader transaction proceeds.
It supports the inference story, but near-term moves still hinge on flows, macro, and technicals. With RSI near neutral and CCI overbought, pullbacks are possible. Medium term, successful latency and cost wins could lift adoption, strengthen margins on serving workloads, and support valuation despite a high P/E.
Banks, telcos, and healthcare rely on instant responses for fraud detection, call routing, and clinical tools. Low latency reduces wait times and improves accuracy at scale. If the Nvidia Groq deal lowers per-query cost and stabilises latency, it can speed production rollouts across Australian enterprises and cloud regions.
Not yet. CNBC reported the chatter, but Nvidia has only confirmed a licence and hires. Until there is a filing, investor update, or regulator notice, treat the US$20 billion figure as speculative. We advise position sizing that does not depend on an unconfirmed acquisition outcome.
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.
