Nvidia stock dips as DOJ probes $20 billion Groq licensing deal

Published on 09/10/2026 at 15:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nvidia stock trades around USD 223 on Nasdaq as of September 10, 2026, testing levels near its 52-week high after a year-to-date gain of roughly 23 percent. Wall Street still sees upside, with an average analyst price target near USD 327 and Q2 revenue more than doubling year over year.

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Nvidia Corporation stock (ISIN US67066G1040) is trading around USD 223 on Nasdaq as of September 10, 2026, leaving the AI chipmaker just below its 52-week high while still up about 23 percent year to date according to a recent market overview.

DOJ investigation adds a new risk

On September 10, 2026, the U.S. Department of Justice opened an investigation into Nvidia’s large licensing arrangement with AI chip startup Groq, a deal valued at about USD 20 billion and designed to expand access to Nvidia’s accelerated computing technology, according to GuruFocus.

The inquiry focuses on whether the structure of the Groq agreement was intended to avoid standard antitrust review procedures, creating headline risk around Nvidia’s aggressive push to lock in AI infrastructure demand as regulators scrutinize concentration in advanced chips and data-center compute, as reported by Yahoo Finance.

Stock holds near 52-week highs despite probe

Despite the legal overhang, Nvidia stock recently closed at USD 223.67 on Nasdaq, down about 0.9 percent on the day but still pressing against a 52-week high of roughly USD 236.26 and well above a 52-week low near USD 164.27, according to a detailed trading recap from 24/7 Wall St.

That level leaves the shares only around 5 percent below their 52-week peak, underscoring how strongly the stock has recovered from a sluggish start to the year; according to Yahoo Finance, Nvidia’s roughly 23 percent year-to-date gain now outpaces the broader S&P 500, even after the latest pullback.

Q2 2026 results show triple-digit growth

The main fundamental support for the high valuation comes from Nvidia’s most recent reported quarter, Q2 2026, when revenue more than doubled versus the prior-year period and beat Wall Street expectations, according to Blockonomi.

In that quarter, Nvidia reported revenue of USD 96.22 billion, up 105.9 percent year over year from the prior-year quarter and above an analyst consensus estimate of USD 92.27 billion, delivering a beat of roughly USD 3.95 billion on the top line, according to Blockonomi.

Earnings per share for Q2 2026 came in at USD 2.22, exceeding the consensus forecast of USD 2.09 by USD 0.13 and more than doubling the USD 1.05 EPS reported in the comparable quarter a year earlier, highlighting the leverage in Nvidia’s data-center business as AI workloads ramp, according to Blockonomi.

Operating profitability is also high: Nvidia’s net margin in the Q2 2026 period stood at 63.66 percent, while return on equity reached 96.04 percent, placing the company at the top end of the semiconductor industry on profitability metrics, according to Blockonomi.

Looking ahead, Wall Street expects full-year EPS of about USD 9.10 for the current fiscal year based on the latest projections, pointing to sustained earnings expansion as AI infrastructure demand stays strong, according to Blockonomi.

Analysts remain bullish with targets far above current price

The valuation debate is intense, but most analysts still see considerable upside from current levels. According to The Motley Fool on September 10, 2026, the average price target for Nvidia stands at USD 327, roughly 42 percent above a current share price of about USD 230.

Individual views vary widely: Argus Research has a relatively cautious target of USD 220, slightly below where the stock is trading, while Raymond James sits at the top end with a bullish target of USD 515, indicating more than a doubling potential from today’s price if its scenario plays out, according to The Motley Fool.

In terms of ratings, 48 of 60 analysts currently recommend buying Nvidia shares, with another nine issuing a strong buy recommendation, while Deutsche Bank stands out with a more neutral hold stance, according to The Motley Fool.

Among recent moves, J.P. Morgan analyst Harlan Sur lifted his price target from USD 280 to USD 320 in the wake of the Q2 2026 results, reflecting greater confidence in Nvidia’s ability to sustain its AI-driven growth trajectory, according to The Motley Fool.

Shareholder returns and balance-sheet strength

Alongside its growth investments, Nvidia has continued to return cash to shareholders. The company has an USD 80 billion share repurchase authorization approved on May 20, 2026, providing flexibility to support the stock and manage capital allocation as cash flows expand, according to Blockonomi.

The company also pays a modest dividend. Shareholders of record as of September 10, 2026, are set to receive a quarterly dividend of USD 0.25 per share, which annualizes to USD 1.00 per share and implies a dividend yield of about 0.4 percent at recent prices; this payout ratio stands at roughly 12.64 percent, indicating that most earnings are still reinvested into growth, according to MarketBeat.

Valuation screens also suggest headroom. According to GuruFocus on September 10, 2026, Nvidia’s shares at around USD 223.67 trade about 41.8 percent below an intrinsic GF Value estimate of USD 384.57, translating into a GF Score of 96 out of 100 and a financial-strength score of 9 out of 10.

Regulatory scrutiny tempers the bull case

The DOJ probe into the Groq deal is the most prominent new risk, coming on top of existing concerns about demand cyclicality and input costs. According to Intellectia, Nvidia’s management has guided for revenue to rise from USD 96.2 billion in Q2 2026 to about USD 108 billion in Q3, corresponding to around 70 percent year-over-year growth, but there is a risk that profit margins could be squeezed if memory and other component costs rise faster than pricing power.

Even so, the stock’s forward valuation looks restrained relative to its growth outlook. According to Yahoo Finance, Nvidia trades at a forward price-to-earnings multiple of about 14.5 times analyst estimates for fiscal 2028, a level that some commentators characterize as relatively cheap given that the company recently projected revenue growth of roughly 70 percent for that year.

Stock stays just below recent highs

As of the latest completed trading session cited in multiple market summaries on September 10, 2026, Nvidia stock closed at USD 223.67 on Nasdaq, down 0.9 percent on the day, with that price sitting between a 52-week low of USD 164.27 and a 52-week high of USD 236.26 and corresponding to a market capitalization in the multi-trillion-dollar range in USD terms based on the share count.