While the markets were quiet for the post-Christmas trading session, NVIDIA (NASDAQ: NVDA) made a noise that will echo for years. The company announced a definitive agreement to pay approximately $20 billion in cash to license the technology and hire the core engineering team of AI chip startup Groq.
The timing of this announcement is poetic. On the very day NVIDIA is distributing its quarterly dividend of $0.01 per share to loyal shareholders, it is aggressively reinvesting its massive cash pile to secure its future dominance. The market reaction has been swift and bullish. NVIDIA shares climbed roughly 1.5% following the news, trading in the $188 to $191 range. This move pushes the company’s market capitalization firmly past the $4.6 trillion milestone.
