Nvidia Partners with Intel, Palantir and Groq in $20B Infrastructure Push
Nvidia’s market cap surged from $345 billion to $4.5 trillion as its GPUs became the backbone of generative AI, driving a tenfold stock gain over three years. The company has forged partnerships—highlighted by a $20 billion licensing deal with Groq and collaborations with Intel, Palantir and Nokia—to build an end-to-end AI platform.
1. Nvidia Solidifies AI Chip Leadership
Over the past three years, Nvidia’s market capitalization has surged from approximately $345 billion to over $4.5 trillion, driven by tenfold revenue growth in its data center segment. Its GPUs, once primarily used for gaming, now power over 90% of generative AI training workloads at major hyperscalers. Quarterly data center revenue jumped 62% year-over-year to $57 billion most recently, reinforcing Nvidia’s position as the backbone of AI infrastructure.
2. Strategic Partnerships Expand End-to-End Platform
Nvidia has evolved into a full-stack AI platform, integrating chips, software and networking gear. It forged a $20 billion licensing agreement with Groq to bring inference workloads in-house, and collaborates with Intel on custom CPUs leveraging NVLink interconnects to enable unified server racks. High-profile alliances with Anthropic, Palantir, Archer Aviation and Nokia further embed Nvidia technology across both cloud and physical AI systems, creating high customer stickiness and multiple new revenue streams.
3. Infrastructure Buildout Fuels Long-Term Growth
Company leadership forecasts global AI infrastructure spending could exceed $4 trillion per year by 2030, spanning data centers, chip fabs and supporting facilities. Nvidia’s roadmap includes the upcoming Rubin platform—combining CPU and GPU on a 3 nm process—and next-generation Ferryman GPU architecture. Consensus models project Nvidia’s earnings per share reaching roughly $17 by 2030; applying a conservative forward multiple of 24× implies a potential market capitalization nearing $10 trillion.
4. Attractive Valuation with Upside Potential
Nvidia currently trades at a forward P/E multiple of approximately 24× and a PEG ratio below 0.7, levels generally viewed as undemanding given its growth trajectory. Its data center networking revenue soared 162% to $8.2 billion in the latest quarter, and gross margins remain above 70%. With consensus analyst estimates modeling continued high-teens EPS growth beyond 2027, the stock offers compelling upside potential for long-term investors.