December 29, 2025
NVDA Intel Stake; Groq Deal; Data Center Ethernet
NVDA, INTC, GOOGL, AMZN, ANET
Nvidia (NVDA)
Strategic Agreements: Nvidia entered a $20 billion licensing deal with Groq (a chip designer) to acquire key executives and "deterministic processing" technology, which is more efficient for AI inference than standard GPUs.
Intel Investment: The company completed a $5 billion stake in Intel (initially announced in September 2025) to co-develop CPUs for data centers and PCs.
Market Dominance: Nvidia currently holds a 95% GPU market share.
Regulatory Risk: The deal with Groq was structured as a license rather than an acquisition to potentially avoid FTC scrutiny.
Networking Trends: Data centers are beginning to move toward Ethernet-based switching to reduce dependency on Nvidia’s proprietary InfiniBand technology.
Intel (INTC)
Corporate Turnaround: Under new CEO Lip Boutan, the stock surged 80% in 2025.
Nvidia Partnership: Intel received a $5 billion investment from Nvidia to co-develop CPUs.
2026 Focus: Investors are monitoring whether the company can secure major external customers for its 18AP and 14A manufacturing processes.
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Nvidia (NVDA)
Strategic Agreements: Nvidia entered a $20 billion licensing deal with Groq (a chip designer) to acquire key executives and "deterministic processing" technology, which is more efficient for AI inference than standard GPUs.
Intel Investment: The company completed a $5 billion stake in Intel (initially announced in September 2025) to co-develop CPUs for data centers and PCs.
Market Dominance: Nvidia currently holds a 95% GPU market share.
Regulatory Risk: The deal with Groq was structured as a license rather than an acquisition to potentially avoid FTC scrutiny.
Networking Trends: Data centers are beginning to move toward Ethernet-based switching to reduce dependency on Nvidia’s proprietary InfiniBand technology.
Intel (INTC)
Corporate Turnaround: Under new CEO Lip Boutan, the stock surged 80% in 2025.
Nvidia Partnership: Intel received a $5 billion investment from Nvidia to co-develop CPUs.
2026 Focus: Investors are monitoring whether the company can secure major external customers for its 18AP and 14A manufacturing processes.
Google (GOOGL)
AI Leadership: Identified as a top AI pick for 2026 due to the launch of Gemini 3.
Competitive Advantage: Maintains a search advantage against OpenAI.
Financial Health: As a legacy hyperscaler, Google maintains ample free cash flow to support high AI capital expenditure growth.
Amazon (AMZN)
Growth Outlook: Analysts forecast a 50% upside potential for the stock in 2026.
AWS Performance: Growth is re-accelerating at Amazon Web Services (AWS).
Operational Challenges: The company has halted drone delivery plans in Italy due to regulatory hurdles.
Financial Health: Retains significant free cash flow to sustain a projected 50% year-over-year growth in AI CapEx.
Arista Networks (ANET)
Architecture Shifts: Expected to benefit from "scale-up" architecture as data centers transition toward Ethernet-based switching.
Networking Growth: Part of a sub-sector projected to see 80% earnings growth in 2026.
Technology Sector News
Micron (MU): Highlighted as a key player as the AI cycle shifts focus toward memory requirements in data centers.
Coherent (COHR): A top pick in the optical transceiver space, benefiting from the industry transition from 800G to 3.2T equipment.
Groq: A chip designer valued at $20 billion; entered a major licensing deal with Nvidia.
Microsoft (MSFT): Noted as a legacy hyperscaler with ample free cash flow to sustain AI investment.
Oracle (ORCL) & Coreweave: Mentioned regarding analyst skepticism over the cash flow of "NeoClouds" and late-comers to the AI space.
Important Disclosure
This newsletter is for informational purposes only and does not constitute investment advice. Content is generated by AI and may contain inaccuracies; always verify data independently before trading. Investing involves significant risk of loss. AlchemyJ is not a registered financial advisor. By reading this, you agree to our terms.
