Nvidia just made its largest purchase ever, acquiring assets from AI-chip startup Groq for about $20 billion, according to CNBC reporting on December 24. The deal includes a nonexclusive licensing agreement and will bring some of Groq's executive team into Nvidia's ranks, as reported by MarketWatch on December 25.
The acquisition underscores the intensifying competition in AI infrastructure—a space that's reshaping energy markets and corporate investment strategies. But here's what's particularly striking: while Nvidia has dominated headlines as the AI boom's biggest winner, other infrastructure players have actually delivered better returns to investors this year.
The Infrastructure Stocks Outrunning Nvidia
Five infrastructure stocks have more than tripled in value during 2025 on the strength of the AI trade, according to CNBC reporting on December 24. The list includes companies like Lumentum, Celestica, and Seagate—firms that supply the components and systems powering data centers rather than the chips themselves.
This performance divergence matters because it reveals where the real bottlenecks are forming in AI infrastructure buildout. While Nvidia's chips remain essential, the broader ecosystem of cooling systems, power delivery, storage, and networking equipment is proving equally critical—and potentially more constrained. The tripling of these stocks suggests investors see sustained demand for infrastructure components as AI data center deployments accelerate globally.
Energy Implications of the AI Infrastructure Race
The consolidation and investment patterns in AI chips and infrastructure have direct implications for energy markets. Bloomberg reported that a nuclear developer has proposed using Navy reactors for data centers, while Alphabet announced plans to buy clean energy developer Intersect for $4.75 billion as part of its AI investment push, according to Reuters reporting on December 22.
These moves signal that major tech companies recognize AI's voracious appetite for reliable, often carbon-free power. The race to secure energy sources for data centers is becoming as competitive as the race for chips themselves. Companies are exploring everything from nuclear power to renewable energy partnerships—a stark contrast to traditional data center development, which often relied on whatever grid capacity was available.
Market Volatility Amid Holiday Trading
While AI infrastructure captures investor attention, traditional energy markets remain volatile. Oil prices climbed despite oversupply fears, with WTI crude futures advancing more than 3% during the final full trading week of 2025, rising to $58.46 after gaining $1.94 since the previous Friday, according to OilPrice.com reporting on December 24. Reuters noted on the same date that oil was marginally lower as investors weighed U.S. data and geopolitical tensions.
Natural gas showed similar volatility. U.S. natural gas futures surged the most since late October as traders warned that "winter isn't over," with another wave of cold air set to spill into the eastern half of the Lower 48 early next week, according to OilPrice.com on December 24. However, Natural Gas Intel reported on December 24 that futures retreated during the shortened Christmas Eve session, giving back a portion of Tuesday's outsized gains as weather models trimmed heating demand.
What's Next for Energy and AI
The Groq acquisition represents a consolidation moment in AI chip development, but the broader story is about infrastructure. The tripling of component suppliers' stock prices suggests that the real constraint in AI expansion may not be chips alone, but the entire ecosystem required to power and cool massive data centers.
For energy markets, this creates both opportunity and challenge. Tech giants are actively seeking reliable power sources, which could drive investment in grid modernization and renewable energy infrastructure. But the concentrated demand from a handful of mega-companies also creates risks—particularly if data center buildout accelerates faster than grid capacity can support.
The holiday trading period has muted some market action, but the structural shifts in how AI infrastructure is being built and powered will likely dominate energy sector discussions when markets fully reopen in 2026.
Reporting based on coverage from CNBC, MarketWatch, OilPrice.com, Natural Gas Intel, Reuters, and Bloomberg.