Wall Street’s Not Sure What to Think About Nvidia’s Deal for Groq, But Mizuho Says You Should Keep Buying NVDA Stock

Core Viewpoint - Nvidia is acquiring Groq's assets and talents for $20 billion, which is expected to enhance its position in the AI inference market [1][5]. Group 1: Acquisition Details - The acquisition of Groq, an AI startup specializing in high-bandwidth, low-latency architectures, is seen as a strategic move for Nvidia [1]. - The $20 billion price tag is relatively small compared to Nvidia's market capitalization, indicating minimal financial risk associated with the deal [5]. Group 2: Market Performance - Nvidia's stock has increased approximately 120% from its year-to-date low in early April [2]. - The consensus rating for Nvidia shares remains at "Strong Buy," with a mean price target of $256, suggesting potential upside of over 35% from current levels [6]. Group 3: Analyst Insights - Mizuho analyst Vijay Rakesh believes the Groq deal will provide a meaningful long-term benefit for Nvidia shares, particularly in AI inference, which is projected to account for up to 80% of workloads [3]. - Rakesh maintains an "Outperform" rating with a price target of $245, indicating a potential upside of 32% [4].