Nvidia faces DOJ scrutiny over its Groq licensing deal, yet the stock maintains a 'Strong Buy' rating as the company reports record-breaking fiscal Q2 revenue of $96.2 billion and strong data center growth.
Nvidia faces heightened regulatory scrutiny as the Department of Justice investigates its $20 billion licensing deal with AI startup Groq. Despite antitrust concerns and ongoing probes in France and China, the chip giant continues to outperform the S&P 500, fueled by a 106% year-over-year revenue surge in fiscal Q2 2027.
The DOJ is examining whether the $20 billion licensing agreement was intentionally structured to avoid formal antitrust merger reviews while effectively consolidating a competitor.
Nvidia shares have risen 17% YTD, supported by nine consecutive quarters of earnings beats and robust demand for its AI-focused data center hardware.