2025-12-30 01:27:02

Yesterday (December 29), the three major US stock indices all declined collectively. The biggest news behind this was that NVIDIA was rumored to plan a $20 billion cash acquisition of AI chip startup Groq. As a result, NVIDIA's stock price dropped by 1.21%, dragging down the AI sector and the Nasdaq.

To be honest, there’s no problem with the logic of this acquisition itself—Groq comes from the Google TPU team and has real expertise in low-latency inference chips. Combining forces in the inference field should theoretically be a positive development. But the current issue is, is the $20 billion price tag really attractive in the environment of high interest rates?

This market reaction precisely reflects everyone’s mindset: the AI boom has become somewhat "burned out" by the end of the year. Any huge capital expenditure is being scrutinized and amplified endlessly. Plus, there are concerns about antitrust investigations—such a large acquisition will definitely attract regulatory attention. Additionally, gold and silver prices have plunged from their historical highs, causing mining stocks to suffer as well, and overall market sentiment is downward.

Currently, tech stocks and value stocks are likely to continue oscillating at high levels, waiting for the Q1 2026 earnings season and the new Federal Reserve guidelines to give a signal. The optimistic logic is that if NVIDIA truly integrates Groq’s inference technology and launches new products, it could outpace competitors significantly. The downside risk is that if antitrust authorities really impose a heavy hand or if the Federal Reserve unexpectedly hawks, AI value stocks could see further declines.

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HackerWhoCares

· 20h ago

20 billion invested and the result is a drop, this is ridiculous, the market simply doesn't buy it. Waiting for regulatory authorities' response, then it will really be bloodshed. This wave of AI hype seems to have peaked, the money is burning too fiercely. Groq's technology is good, but can this price really be recouped? It depends on the performance of subsequent products. The anti-monopoly sword has been hanging over us all along, who dares to make big moves now? The market sentiment at the end of the year is just bad, everything is being pushed down.

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TokenomicsPolice

· 20h ago

20 billion invested and it still drops, this is outrageous, regulators' knives are hanging in the air The hype around AI has indeed cooled down, everything is expensive and slow Even if Groq is awesome, it can't bring back this price level, the market can't handle this Waiting for earnings reports and watching the Federal Reserve again, this wave really can't stabilize Such a big move in chip mergers and acquisitions, how could antitrust authorities not be watching

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TokenUnlocker

· 20h ago

20 billion invested and only down 1.21%, I thought it would be worse, the market is still giving face --- It really is a money-burning game, the anti-monopoly sword is hanging, who dares to casually merge --- Groq's worth of 200 billion? I think it's a gamble, better to distribute dividends to shareholders --- Wait for the earnings season, anything said now is useless, the market is just waiting to watch the show --- With such high interest rates, still throwing money in, Nvidia is a bit crazy, but this is what tech companies should do --- The AI sector has really hit the ceiling, even good news can't stop the decline, no wonder everyone is rushing to Hong Kong stocks

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SolidityNewbie

· 20h ago

Is dumping 20 billion enough to cause a drop? The market really can't hold on anymore; it's time to reflect. --- Groq chips are indeed impressive, but I have to question the price under high interest rates. --- The anti-monopoly sword is hanging overhead; who dares to be optimistic about large-scale mergers and acquisitions? --- Year-end is here, funds are shrinking, and any small movement in AI concept stocks causes them to plunge. --- Instead of debating whether 20 billion is worth it, it's better to see if the 2026 financial report season can save the situation. --- Regulatory authorities are watching, and the Federal Reserve hasn't loosened its stance; we still need to watch for signals. --- Gold and silver plunge, mining stocks suffer, and the entire market sentiment has become dull, really. --- Even the strongest reasoning chips can't withstand the cooling environment. --- Next year, good news is necessary; otherwise, tech large-cap stocks will continue to fluctuate without a clear direction.

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