Nvidia Stock Soars Past $190 After Historic Groq Deal, $250 Target in Sight

Nvidia’s share price surged past the $190 mark on December 26, 2025. This jump followed the company’s historic $20 billion strategic deal with AI chip startup Groq. The announcement has reshaped market expectations for the semiconductor giant’s future.

Analysts rapidly revised their price targets upward, with many now seeing a path to $250 by year’s end. According to Reuters, this agreement is Nvidia’s largest-ever licensing investment. It directly targets the high-growth AI inference market.

Unpacking the $20 Billion Groq Licensing Agreement

Nvidia announced the landmark agreement on December 23. The deal involves a non-exclusive license to Groq’s proprietary low-latency inference technology. Groq will retain its independence while sharing its compiler expertise and hardware designs.

The financial terms value the partnership at $20 billion. Groq’s founder, Jonathan Ross, will join Nvidia’s leadership team. This move aims to integrate Groq’s acceleration tech into Nvidia’s next-generation Blackwell and Rubin GPU architectures.

Stock Performance and Bullish Analyst Sentiment

NVDA stock has gained roughly 40% in 2025. It closed at $188.61 on December 24 before rallying further on the Groq news. The stock opened premarket trading on December 26 at $190.16, signaling strong investor confidence.

Wall Street’s response has been overwhelmingly positive. Multiple firms have raised their price targets. The mean analyst price target now sits above $250, suggesting significant upside potential from current levels.

Strategic Implications for the AI Chip Race

This deal strengthens Nvidia’s hand in the critical inference segment. Inference, or running trained AI models, is a massive and growing market. Competitors like Google‘s TPU had been making inroads in this space.

Nvidia’s move secures cutting-edge technology to make AI applications faster and cheaper. It addresses a key customer demand for cost-effective operation of large models. The integration could unlock notable performance gains in future data center products.

The path for Nvidia stock appears robust as it enters 2026. The Groq deal provides a concrete technological edge. Reaching the $250 price target now seems a matter of execution in the coming quarters.

A quick knowledge drop for you

What is the Groq deal with Nvidia?

It’s a $20 billion non-exclusive licensing agreement. Nvidia gains access to Groq’s low-latency AI inference technology. Groq remains an independent company while its founder joins Nvidia’s team.

Why is Nvidia stock going up?

The stock is rising due to the strategic Groq acquisition and strong annual performance. Analysts see the deal securing Nvidia’s leadership in AI inference. Upward revisions in price targets are driving positive momentum.

What is the Nvidia stock price target for 2025?

The mean analyst price target is now above $250. Several analysts set this target immediately following the Groq deal announcement. It represents a significant upside from the current price near $190.

How does this affect the AI chip market?

It solidifies Nvidia’s dominance across both AI training and inference. The deal raises the competitive bar for other semiconductor companies. It may accelerate innovation and consolidation across the industry.

What is AI inference technology?

Inference is the process of running a trained AI model to make predictions. It’s distinct from the training phase where the model learns. Groq’s technology specializes in making this process extremely fast and efficient.

Trusted Sources: Reuters, Associated Press, Bloomberg.