NVIDIA's Stock Rises Following $20 Billion Acquisition of Groq Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 06 2025
0mins
Should l Buy NVDA?
Source: CNBC
NVIDIA Corp's stock rose by 3.36% today, reaching a 20-day high, amid positive market conditions with the Nasdaq-100 up 1.20% and the S&P 500 up 0.60%.
This surge is attributed to NVIDIA's $20 billion acquisition of Groq Technology, which is expected to significantly enhance its capabilities in the AI sector. The deal, although not officially announced, has already led to a positive market reaction, with NVIDIA's stock increasing by about 2% following the news. Analysts believe this acquisition will not only bolster NVIDIA's competitive edge but also mitigate risks from competitors by securing Groq's technology.
The implications of this acquisition are profound, as it positions NVIDIA to further solidify its leadership in the AI market. The integration of Groq's technology is anticipated to accelerate NVIDIA's advancements in AI inference, thereby enhancing its market share and investor confidence.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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