Nvidia struck a $20 billion deal to license AI inference technology from Groq, driving shares up 2% to all-time highs. Analysts see the move strengthening Nvidia’s leadership in AI inference and expanding real-time AI capabilities. With a robust balance sheet, Nvidia can absorb the transaction comfortably, enhancing long-term dominance.

The Groq deal showcases Nvidia’s strategic shift towards real-time AI inference, positioning the company at the forefront of the next AI phase. Analysts reaffirm positive views on NVDA stock, with price targets ranging from $275 to $256, suggesting potential gains of up to 37%. The consensus is that the deal will broaden Nvidia’s market reach and innovation capabilities.

Nvidia’s fiscal third-quarter results exceeded expectations, with record revenue of $57 billion and a 62% YoY jump. Gross margins dipped slightly, but the firm remains highly profitable with a 55.8% net margin. Strong networking product momentum challenges competitors and supports Nvidia’s position in the data center market stack, with $60.6 billion in cash and minimal debt to drive strategic investments and growth.

Read more at Yahoo Finance: A $20 Billion Catalyst Just Hit Nvidia. How Should You Play NVDA Stock Amid Groq Asset Deal?