Groq Lands $750M Funding Round with BlackRock, Samsung, and Cisco, Valuation Hits $6.9B

Groq, a challenger to Nvidia in AI infrastructure, has raised $750 million, pushing its valuation to $6.9 billion. The funding comes from investors including BlackRock, Samsung, Cisco, and Deutsche Telekom Capital Partners. Groq will use the capital to expand data center capacity and meet customer demand. The company is focusing on inferencerunning models in production environments, where the race is wide open.

NVIDIA Corporation's latest quarterly results highlight the company's robust growth in the data center business. In the second quarter of fiscal 2026, data center revenues jumped 56% year over year to $41.1 billion, accounting for approximately 89% of total revenues of $46.74 billion. This significant growth was driven by the strong adoption of the new Blackwell platform and continued orders from hyperscalers like Microsoft, Google, and Amazon NVIDIA's Data Center Sales Soar 56% in Q2: Can It Keep the Momentum?^[1].

NVIDIA's leadership in AI infrastructure is evident, with the company's deep integration of hardware, networking, and software providing a strong position. The Zacks Consensus Estimate for fiscal 2026 data center revenues is pegged at $181.03 billion, indicating a strong year-over-year growth of 57% NVIDIA's Data Center Sales Soar 56% in Q2: Can It Keep the Momentum?^[1].

Meanwhile, Groq, a challenger to NVIDIA in AI infrastructure, has raised $750 million, pushing its valuation to $6.9 billion. The funding comes from investors including BlackRock, Samsung, Cisco, and Deutsche Telekom Capital Partners. Groq will use the capital to expand data center capacity and meet customer demand. The company is focusing on inferencing running models in production environments, where the race is wide open .

While NVIDIA maintains its leadership, rivals such as Advanced Micro Devices (AMD) and Intel (INTC) are working hard to expand their presence in the AI data center space. AMD is witnessing growing adoption for its MI300X GPUs, while Intel is focusing on both CPUs and AI accelerators to grab a market share NVIDIA's Data Center Sales Soar 56% in Q2: Can It Keep the Momentum?^[1].

NVIDIA's shares have risen around 31.9% year to date compared with the Zacks Computer and Technology sector's gain of 18.2%. From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 32.23, higher than the sector's average of 28.62. The Zacks Consensus Estimate for NVIDIA's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 48.5% and 38.9%, respectively NVIDIA's Data Center Sales Soar 56% in Q2: Can It Keep the Momentum?^[1].