Groq Raises $650M After $20B Nvidia Deal as Rivals Marvell, AMD Ramp AI Chips

NVDA•2026-05-28

Groq is raising $650 million from investors after a $20 billion licensing deal with Nvidia, highlighting Nvidia’s influence in AI chip markets. Marvell forecasts over $10 billion in custom AI chip revenue by fiscal 2029 and AMD’s Data Center sales rose 57% in Q1, underscoring intensifying competition around Nvidia’s AI leadership.

1. Groq Raises $650M Following Nvidia Licensing Deal

Groq secured $650 million from existing backers after finalizing a $20 billion licensing agreement with Nvidia. The AI chipmaker is transitioning to an AI inference neocloud model led by CEO Adam Winter and CFO Matt Eng, with pro rata commitments from Disruptive and Infinitum ensuring the round’s completion.

2. Marvell Projects Over $10B in AI Chip Revenue by 2029

Marvell Technology forecast custom AI chip revenue exceeding $10 billion by fiscal 2029 and lifted its fiscal 2028 revenue outlook to $16.5 billion from $15 billion. First-quarter revenue rose 28% to $2.42 billion with adjusted profit of $0.80 per share, and second-quarter revenue guidance stands at $2.70 billion.

3. AMD’s Q1 Data Center Growth and Valuation Pressures

AMD reported 38% year-over-year revenue growth in Q1 2026, driven by a 57% increase in Data Center sales and record free cash flow. The stock trades at a 78x forward P/E and a 35x future free cash flow multiple, reflecting high execution expectations for GPU ramps and margin expansion.

4. Market Rally Concentrated in Nvidia and Mega-Caps

The recent Wall Street rally has been driven by a narrow group of mega-cap technology stocks led by Nvidia, raising questions about market breadth and valuation stretch. Persistent geopolitical tensions and concentrated gains suggest potential volatility if AI leadership growth slows down.