Bernstein analyst Stacy Rasgon recently highlighted Nvidia’s non­exclusive licensing agreement with California­based startup Groq as the final obstacle for skeptics. Groq, founded by Jonathan Ross—the designer of Google’s first tensor processing unit—specializes in high­bandwidth, low­latency architectures. Under the deal, Nvidia gains access to Groq’s line processors (LPUs) for inference workloads, strengthening its ecosystem without material acquisition costs. Rasgon notes this partnership leverages Nvidia’s extensive R&D budget—over $15 billion in the past 12 months—and its entrenched data center footprint to preempt competitive threats from emerging AI chip vendors.

According to three sources cited by Reuters, Nvidia plans to resume H200 data­center GPU shipments to approved Chinese customers by mid­February, utilizing existing inventory to fulfill an initial tranche of 40,000–80,000 units. At an average selling price of $32,000 per card, this could generate $1.3–2.6 billion of incremental quarterly revenue. Furthermore, Nvidia expects to bring additional production capacity online in Q2 2026 to meet sustained high demand from top Chinese cloud providers. This reinstatement follows U.S. export control relief announced in December, under which Nvidia must remit 25% of its Chinese revenue to the Treasury.

After peaking near a $5 trillion market capitalization in October, Nvidia shares have retraced roughly 10%, reflecting normalization from extraordinary gains. Nonetheless, its vertically integrated AI platform—from GPUs to CUDA software tools—continues to command high barriers to entry. Analysts forecast data center capex growth to $3–4 trillion annually by 2030, positioning Nvidia to capture an outsized share. With forward earnings multiples now below 25x, some strategists see renewed buying opportunities ahead of fiscal 2027 guidance and next­generation product launches.