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.
Important Disclaimer
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.
