Groq Stock: Processing Groq’s IPO Potential
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Explore opportunities to invest in the AI startup Groq stock as the IPO date approaches. Linqto* removes barriers to private markets and gives you access to invest in pre-IPO companies. Groq is recently available.
Table of Contents
Notable Groq News
08/05/2024: Groq Raises $640M Series D
07/10/2024: Groq Nears $2.2 billion valuation
05/22/2024: Groq Enlists Morgan Stanley to Raise $300 Million
Older news…
About Groq
Groq is an artificial intelligence (AI) company that designs and develops high-performance processing chips and accelerators.
Its flagship product is the Language Processing Unit (LPU), previously known as the Tensor Streaming Processor (TSP). The LPU is an application-specific integrated circuit (ASIC) designed to increase the performance of AI computing for large language models, AI image generators, and other AI applications.
Groq doesn’t make LLMs like AI companies Anthropic and Mistral AI. But its technology makes them faster. So, they can take open-source models and run them at higher speeds than the LLMs could on their own, improving the user experience.
While competitors Nvidia and Cerebras offer more generalized GPUs for AI processing of massive models and Lightmatter uses photonics, Groq’s unique combination of high-speed, deterministic AI processing sets it apart, focusing on serving real-time applications and predictable performance.
Groq also offers a software stack that complements its hardware, as well as on-premises racks or cloud AI computing services.
Jonathan Ross and a team of engineers founded Groq. The team previously worked at Google on the Tensor Processing Unit (TPU) project — Google’s in-house AI accelerator.
The company is headquartered in Mountain View, California, near Google.
Here’s an interview with Groq CEO Jonathan Ross. He talks about breaking speed records:
Ownership
Groq is a venture-backed startup. Its equity ownership participants include the founders, employees, and several venture capital firms.
Prominent venture capital investors include (but are not limited to) Blackrock, Cisco, KDDI, Tiger Global Management, Neuberger Berman, Samsung Catalyst Fund, Global Brain, Infinitum Partners, IronArc Ventures, Millennia Capital, and Type One Ventures.
Funding Rounds
| Round | Date | Est. Valuation | Raise Amount | Price |
|---|---|---|---|---|
| Series D | 08/04/24 | $2.80B | $640.00M | $16.80 |
| Series C | 02/27/24 | $1.15B | $46.00M | $ 11.54 |
| Series C | 04/13/21 | $1.10B | $300.00M | $ 11.54 |
| Series B | 11/14/18 | $312.28M | $52.28M | $ 5.87 |
| Series A | 12/06/16 | $30.27M | $10.27M | $ 0.97 |
| Source: Caplight |
Valuation
The latest confirmed Groq valuation is $2.8 billion based on the Series D funding round completed in August 2024.
Pre-IPO platform data from Hiive suggests an active marketplace for Groq private shares. Several transactions occurred over the summer of 2024 at a slightly elevated valuation.
IPO Potential
The Groq IPO date has yet to be determined. The company is still young, gaining customers and refining its technological capabilities.
Typically, a company at this stage and valuation may be a few years away from an IPO. However, with the recent rally in Nvidia shares and the potential IPO by Cerebras (expected in late 2024), Groq may be tempted to IPO earlier than expected.
The next IPO window could be a compelling time to IPO, which could be in 2025 or 2026.
IPO windows happen when large volumes of private companies go public as institutional investors welcome new stocks at healthy valuations. The last IPO window occurred in 2020-2021.
We’ll get clues about a potential Groq IPO date if the company hires a CFO with IPO experience or says it is talking to investment banks. Reporters often receive leaks and clues about startup intentions to go public to attract public interest.
An S-1 filing (confidentially or public) is the most positive sign that an IPO may be forthcoming.
How to Invest in Groq Stock
The most likely way for most investors to own Groq stock is to wait for the IPO and buy shares after it goes public. As a private company, shares are not readily available to non-accredited investors.
But savvy investors may find opportunities to own the company before and during the IPO.
Because of the SEC accreditation requirement, most individuals cannot own Groq stock directly via pre-IPO investing platforms. However, accredited investors can explore private ownership.
Non-accredited investors can evaluate venture capital funds to find access to pre-IPO startups.
Here are some potential options to own Groq stock before, during, and after the IPO.
1. Access Groq stock pre-IPO
Pre-IPO investment platforms may offer Groq stock for early purchase as employees or early investors seek to sell some of their shares before the Groq IPO.
Accredited investors may access the company, provided they are registered on the platform and receive notifications about their availability.
Monitor pre-IPO investing platforms such as Hiive, Forge Global, EquityZen, and Linqto for availability. Linqto offered recent availability, check for the latest.
Investment minimums on these platforms range from $2,500 to $50,000, and deal-specific minimum investment amounts will vary.
Venture capital funds are a new asset class that emerged in 2022 that allows non-accredited investors to own pre-IPO startups.
The Fundrise Innovation Fund (review) is the most promising for patient, long-term investors. It holds multiple AI and technology startups. U.S.-based investors can make their first investment for $10.
However, Groq is not currently a fund holding. But Fundrise has indicated that AI companies will be a foundational target sector. Investors can own other AI private stocks like OpenAI, Anthropic, and Databricks in lieu of Groq.
Check out our top pre-IPO investing platforms for the latest share availability.
Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.
2. Participate in the Groq IPO through a broker
When a company eventually goes public, investors can buy the stock during the IPO at the IPO price.
Often, only Wall Street’s top customers can invest in IPOs. But now, ordinary investors can access IPOs through participating discount brokers.
Some online brokers (like the ones listed below) allow investors to invest in IPOs for free, even if they have limited funds in their accounts.
TradeStation has a more established track record of accessing more than 360 IPOs and secondary offerings via its partnership with Click Markets (formerly ClickIPO).
Robinhood has the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.
Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.
3. Buy the stock after the Groq IPO
Waiting for the IPO provides access to established financials after the initial trading quarter, whereas pre-IPO investing has reduced transparency.
High-demand companies may be overvalued at the time of their public offering, selling shares near their peak. Share may be at risk of significant losses upon market corrections.
Despite high initial valuations, stock prices sometimes decline after the first and second-quarter earnings reports post-IPO. For example, Rivian and Robinhood dropped over 80% six months after their 2021 IPOs. 2021 was an anomaly but demonstrates the risk of chasing overvalued IPOs.
While stock price declines can make good entry points for long-term buy-and-hold investors, watch out for lockup expirations and earnings discrepancies as they may impact price movements.
Patience is essential. The most disruptive companies may perform better over time.
Frequently Asked Questions (FAQs)
What does the name Groq mean?
The name Groq comes from the science fiction novel Stranger in a Strange Land by Robert Heinlein, and it means to understand something deeply and with empathy.
Are Groq and Grok the same company?
No. “Groq” is a private company that makes AI chips. “Grok” is a generative AI chatbot developed by Elon Musk’s xAI and available on X Corp’s X platform (Twitter).
Both take their names from the novel Stranger in a Strange Land. Groq has modified the spelling.
Is Groq publicly traded?
No. Groq is not publicly traded. It is a private company.
What is the Groq stock price?
A public Groq stock price does not exist.
However, Groq completed its August 2024 Series D funding round at a stock price of around $16.80 per share. Trades on the Hiive platform in late summer 2024 indicate a premium above that value.
What is the Groq stock symbol?
There is no Groq stock symbol because the company is private. The company may reserve a stock symbol while planning to file for an IPO. The reserved symbol will be revealed when the S-1 filing is released to the public.
Though private information regarding forthcoming IPOs typically leaks to the press, startup stock symbols are usually not confirmed until the filing.
The symbol “GROQ” is available in the U.S. and is the likely Groq ticker.
Where is the Groq IPO S-1 Filing?
The Groq S-1 filing has not been released to the public, and there is no indication of a confidential filing.
The document will become available if the company submits filings to the SEC and the regulatory commission approves and releases it to the public.
We’ll post a copy of the S-1 filing on this page when it becomes available.
You can monitor the most recent S-1 IPO filings on this website.
News Archive
04/14/2021: Groq Closes $300 Million Fundraise
09/05/2018: Secretive semiconductor startup Groq raises $52M from Social Capital
04/20/2017: Google engineers have left to form a stealth start-up
Conclusion
Product users and potential investors become excited when they discover companies capitalizing on macroeconomic trends like AI processing chips and software.
Groq may be uniquely positioned to profit from the massive potential of artificial intelligence computer processing.
But buying private stock early on can be challenging for retail investors despite wanting to own the company.
Multiple pre-IPO platforms now provide opportunities for ordinary investors. However, venture capital investment is still primarily reserved for the ultra-wealthy, meaning investors need significant wealth to invest in seed and early funding rounds.
The risks of owning pre-IPO stocks may outweigh the potential gains, so proceed cautiously.
When pursuing IPO shares and early equity in Groq stock, have reasonable expectations. Shares may be unavailable or restricted for ordinary investors looking to own the stock.
Invest in pre-IPO and IPO companies with caution. Good luck if the Groq IPO is on your watch list.
Craig Stephens is a former IT professional who left his 19-year consulting career at the IRS to be a full-time finance writer. A DIY investor since 1995, he started Access IPOs in 2016 to provide a resource for ordinary investors pursuing access to IPOs. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Learn more about Craig.
Risk Statement: Investing in IPOs and pre-IPO startups involves significant risk. Do not invest in companies based solely on what is included in this article. Only invest in IPOs and pre-IPO companies with money you can afford to lose. Access IPOs is for informational purposes only. Mentions of specific investments should not be construed as financial advice. Conduct personalized research and consider consulting with an investment advisor before investing.
