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<Research>BofAS: NVIDIA, Groq's AI Inference Tech Licensing Agreement Surprising
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NVIDIA (NVDA.US) and startup Groq announced a non-exclusive licensing agreement for AI inference technology on Christmas Eve, BofA Securities said in its report. The market estimated the potential value of the transaction could be as high as US$20 billion, and key members of Groq's management team will join NVIDIA, which is surprising, as Groq focuses on developing Language Processing Unit (LPU), different from NVIDIA's well-known design and sale of Graphics Processing Unit (GPU). This transaction may reflect NVIDIA's realization that while GPUs dominate AI training, the rapid shift to inference may require more specialized chips, BofA Securities opined. It also believed that different hardware will add complexity to future GPU and LPU product roadmaps and pricing, but NVIDIA can also offer more options to customers to address market competition. BofA Securities maintained a Buy rating on NVIDIA, viewed the transaction positively in the long term, and continued to list it as a top pick with a target price of US$275. AASTOCKS Financial News Website: www.aastocks.com |
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