Nvidia Market Shares Reach 69.1%, Leaving Behind AMD at Just 31.9%

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NVIDIA Stock RTX Series

Source: Nvidia Official Website

With the Current developments happening in the world of technology, We can foresee a world running on Artificial Intelligence, Machine learning, Cloud Computing, and Blockchain. Replacing the traditional concept of management, things are much pretty much getting automated. Companies adopting the system earliest, the more benefit for them.

A couple of weeks back, NASDAQ listed Nvidia Corp., GPU giant, saw a great rise in their share price. To be precise after the launch of their latest product- “GeForce 10 Series GPU”.
This is the World’s first GPU that enables Real-time Raytracing. Investor optimism has shot up to the sky.

Market Snapshot after Nvidia product launch

Nvidia (NVDA) closed at $271.86 in the latest trading session, falling by a 0.32% from the prior day. The stock lagged the S&P 500’s daily loss of 0.22%. In the meanwhile, the Dow lost 0.31%, and the Nasdaq, a high tech-weighted index, lost 0.26%.
But as per today’s (Sept’ 7, 2018) trading, shares of the maker of Graphics Processing Unit (GPU) for gaming and artificial intelligence had gained 6.34% over the past month. This has put behind the Computer and Technology sector’s gain of 0.1% and the S&P 500’s gain of 1.28% in that time.

What’s the update in RTX series over its previous GTX series?

RTX packed with turing architecture and Real-time Ray tracing technology is around 2x times faster than GTX 1080. The real-time ray tracing gives a realistic effect the graphics with the dynamic in-depth shadows, lighting effects etc. The Impressive part is the frame rates per second(fps). The GTX 1080Ti struggled to run it at anything much beyond 45fps at 4K on its Highest preset, which makes the RTX 2080’s figure of 60fps seem rather astonishing.

Core technologies involved in RTX series

RAY TRACING

Source: Nvidia Official Website

The RTX platform realizes the dream of real-time cinematic-quality rendering through Turing-optimized ray tracing APIs such as NVIDIA OptiX, Microsoft DXR and Vulkan. The ability to render photorealistic objects and environments in real time, with perfectly accurate shadows, reflections and refractions, now makes it possible for artists and designers to create amazing content faster than ever before.

ARTIFICIAL INTELLIGENCE

The RTX platform features the new NGX SDK to infuse powerful AI-enhanced capabilities into visual applications. This dramatically accelerates creativity for artists and designers by freeing up time and resources through intelligent manipulation of images, automation of repetitive tasks, and optimization of compute-intensive processes.

RASTERIZATION

The RTX platform features new Turing-based advances in programmable shading such as variable-rate shading, texture-space shading and multi-view rendering. These enable the creation of richer visuals with more fluid interactivity with large models and scenes, and improved VR experiences.

SIMULATION

Lifelike visuals are the result of not only how something looks, but also of how it behaves. With the power of Turing CUDA cores and APIs such as NVIDIA’s PhysX, FleX and CUDA 10, the RTX platform enables accurate modelling of the behavior of real-world objects in everything from games to virtual environments and special effects.

Nvidia v/s AMD

Source: Nvidia Official Website

Competitor Advanced Micro Devices Inc. (NASDAQ: AMD) is right now focussing on 7-nanometer chips. These chips in all way are similar to that of Nvidia’s GPUs. Well, the current model of Nvidia seems to have an edge over the AMD with its “turing architecture” combined with real-time ray tracing technology giving some beautiful experience to the users. However, there are lot many benchmarks that tell us that the AMD Radeon RX Vega 56, which is available for around $400, is a better performer than the $650 Nvidia GeForce GTX 1070. When you consider the effect that cryptocurrency mining has on the prices, Nvidia actually has a pretty massive advantage from a pricing perspective. The current version RTX 20 series seems to be highly priced. Its previous version and other previous AMD chips can be considered under the budget point of view.

Outstanding Q2’18 numbers!


Source: Nvidia Investor relation presentation

Nvidia had also come up with a good set of numbers in their Q2’18 Reports. The company reported a 40% YoY increase in revenue to $3.12 billion and a 91% increase in earnings per share to $1.76. Its revenue partition goes like 57% from GPUs and around 22% from data center segment. NVDA will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2018.

With Quadro RTX series to be launched in the fourth Quarter 2018, we can anticipate for its impact on sales and hence financial reports.

They have been extremely high priced. Here is the price quotation of the same.

  • Nvidia Quadro RTX 8000: $10,000 (£7,830, AU$13,751)
  • Nvidia Quadro RTX 6000: $6,300 (£4,935, AU$8,660)
  • Nvidia Quadro RTX 5000: $2,300 (£1,800, AU$3,160)

Last words

“Despite Nvidia’s valuation outperforming the industry, extremely strong fundamentals coupled with industry factors makes the case for the bullish sentiment for the stock. Moreover, as the big-budget game season unfolds this fall, Nvidia is expected to see massive orders and revenue coming its way, supporting the investment proposition.”, says Analyst at Gurufocus.

 

 

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