Bernstein Keeps Outperform Rating on Nvidia
Bernstein SocGen Group analyst Stacy A. Rasgon reiterated on December 29, 2025, an ‘Outperform’ rating and $275 price target on Nvidia.
“On Christmas eve CNBC reported that NVIDIA was buying AI silicon startup Groq for $20B in cash.
Subsequently, Groq announced that the company had “entered into a non-exclusive licensing agreement with Nvidia” for Groq’s inference technology , and that founder Jonathan Ross, President Sunny Madra, and “other members” of the Groq team would be joining Nvidia.
It also indicated that Groq would continue to operate as an independent company (with Simon Edwards, current Groq CFO, stepping into the CEO spot), and that the company’s cloud service would continue operation.
The move appears strategic in nature for NVDA as they leverage their increasingly powerful balance sheet to maintain dominance in key areas.
The company is already the clear leader in AI training, but inference workloads are more diversified and (it could be argued) may open up new areas for competition.
Hence spending money (even $20B) to fill in new capabilities and further extend and cement an already massively leading position as inference scales seems reasonable to us, especially if there really is something to Groq’s architecture (and if the latter is true, denying it to others might of course be useful as well, “non-exclusive” or not…).”
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