According to a research report published by Bank of America Securities, Nvidia and startup Groq announced on Christmas Eve that they had reached a non-exclusive licensing agreement for AI inference technology. The market estimated that the potential value of the transaction could reach 20 billion US dollars, and Groq's main management team members will join Nvidia. This is surprising news. Because Groq focuses on developing language processors, it is different from Nvidia, which is famous for designing and selling graphics processors. The bank believes that this transaction may reflect Nvidia's realization that although GPUs dominate AI training, a quick shift to inference may require more dedicated chips. At the same time, it believes that different hardware will add complexity to future GPU and LPU product roadmaps and pricing, but Nvidia can also provide customers with more choices to cope with market competition. The bank maintains a “buy” rating on Nvidia and has a positive long-term view of the deal. It continues to be listed as the preferred stock, with a target price of $275.

According to a research report published by Bank of America Securities, Nvidia and startup Groq announced on Christmas Eve that they had reached a non-exclusive licensing agreement for AI inference technology. The market estimated that the potential value of the transaction could reach 20 billion US dollars, and Groq's main management team members will join Nvidia. This is surprising news. Because Groq focuses on developing language processors, it is different from Nvidia, which is famous for designing and selling graphics processors. The bank believes that this transaction may reflect Nvidia's realization that although GPUs dominate AI training, a quick shift to inference may require more dedicated chips. At the same time, it believes that different hardware will add complexity to future GPU and LPU product roadmaps and pricing, but Nvidia can also provide customers with more choices to cope with market competition. The bank maintains a “buy” rating on Nvidia and has a positive long-term view of the deal. It continues to be listed as the preferred stock, with a target price of $275.