<div id="readability-page-1"><p><strong>Nvidia</strong> (NVDA) made a low-key move in AI this week, and Wall Street took notice. After Nvidia announced a licensing deal with private AI startup Groq, two top analysts from BofA and Robert W. Baird reaffirmed their bullish views, saying the deal supports Nvidia's growing focus on AI inference.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>The deal is a &#34;non-exclusive&#34; license that lets Nvidia access and use Groq's AI inference technology. Groq will continue to run independently, and media reports suggest the deal could be worth up to $20 billion. As part of the deal, Groq CEO Jonathan Ross will join Nvidia. Ross previously worked at Google (GOOGL) and was involved in the early development of Google's Tensor Processing Unit (TPU) program.</p> <h2><strong>Top Analysts Reaffirm Ratings After Groq News</strong></h2> <p>Following the announcement, Tristan Gerra, a 5-star analyst at Baird, reiterated an Outperform rating on Nvidia and maintained his $275 price target. Gerra said the Groq deal aligns well with Nvidia's strategy as AI workloads increasingly shift toward inference, where models are run and used in real-world settings rather than just trained.</p> <p>He also noted that Nvidia has been building a large internal team focused on custom ASIC development. In his view, Nvidia's strength in software — especially its CUDA platform and AI libraries — gives the company a clear edge. That software lead, he said, could help Groq's inference technology scale more easily and reach a wider set of customers over time.</p> <p>In a separate note, Vivek Arya, a 5-star analyst at BofA Securities, also reiterated a Buy rating on Nvidia, calling the stock a &#34;top sector pick.&#34; Arya said the Groq deal was a surprise move announced just before Christmas and involves a very different type of hardware. Groq's technology uses LPUs, or language processing units, which are built for AI inference, while Nvidia's GPUs are mainly used for AI training.</p> <p>He added that the deal shows Nvidia is getting ready for a shift in AI demand toward inference. While working with a new type of hardware could make product plans and pricing harder to manage, Arya said the move gives Nvidia more flexibility and helps it offer customers more choice.<strong></strong></p> <h2><strong>What Is a Good Price for NVDA?</strong></h2> <p>Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $263.58 per share implies 39.8% upside potential.</p></div>

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<p>Nvidia announced a licensing deal with AI startup Groq, allowing access to Groq's AI inference technology. Analysts from BofA and Robert W. Baird reaffirmed their positive outlook on Nvidia, highlighting the deal's alignment with Nvidia's AI strategy. The deal, potentially worth $20 billion, involves Groq CEO Jonathan Ross joining Nvidia. Analysts noted Nvidia's software strength and the shift in AI demand towards inference. Wall Street maintains a Strong Buy consensus on NVDA stock, with a price target suggesting a 39.8% upside.</p>

- Nvidia announced a licensing deal with private AI startup Groq, which analysts view positively as it aligns with Nvidia's focus on AI inference.  
- The deal allows Nvidia to use Groq's AI inference technology and is valued at up to $20 billion, with Groq's CEO joining Nvidia to enhance collaboration.  
- Following this news, analysts reaffirmed bullish ratings for Nvidia, with a consensus Strong Buy rating and an average price target suggesting significant upside potential.

Nvidia's Latest AI Deal Gets a Nod from Wall Street. Top Analysts Weigh In