NVIDIA (NVDA-Free Report) seems to be cashing in on the spurt in demand for laptops and gaming hardware led by the global lockdown. The company recently launched notebook versions of its high-end RTX 2080 Super and RTX 2070 Super GPUs, based on the Turing architecture, which leverages hardware RT Cores to process ray tracing and AI in real time, enhancing visual fidelity.
Besides, NVIDIA also announced that PC OEMs are deploying more than 100 new laptop models featuring its GeForce GPUs, including the RTX 2080 Super or RTX 2070 Super. The systems will be available from the Apr 15 week.
The company is laying the odds that its new gaming GPUs along with some technological improvements in system performance and battery life will strengthen its foothold in the gaming notebook market.
Interestingly, the ten new RTX Studio laptops will be powered by RTX SUPER GPUs and Intel’s (INTC-Free Report) latest 10th-generation CPUs. NVIDIA’s announcements come very close to Intel’s release of the Comet Lake-H gaming notebook CPUs.
NVIDIA Corporation Price and Consensus
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However, NVIDIA indicated that they might soon offer AMD (-) powered systems. Notably, the company’s GPU rival AMD’s Ryzen 4000 H-series processors have strengthened its position in the notebook gaming CPU market.
Notably, NVIDIA is gaining traction from strong growth in GeForce desktop and notebook GPUs, which is driving gaming revenues. The work-and-learn-from-home momentum is driving demand for PCs and cloud-based services, which is contributing to the company’s top line.
The online gaming industry is also benefiting more than others from this coronavirus-induced disruption, given the uncertainty regarding the duration for which people are going to be confined to their homes.
A strong line-up of advanced graphics cards has made NVIDIA a favorite graphics card provider among the PC makers. Further, its Turing GPU and real-time ray tracing technology are witnessing a massive adoption. To propel wider embracement, NVIDIA is enabling ray-tracing backup in several GeForce GTX GPUs. This is likely to lend developers a massive installed base of gamers. Moreover, the launch of GeForce RTX SUPER GPUs is expected to strengthen its leadership in the market.
Zacks Rank and A Key Pick
NVIDIA currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Advanced Semiconductor Engineering, Inc. (-) , sporting a Zacks Rank #1 (Strong Buy) You can see .
Long-term earnings growth rate for Advanced Semiconductor is currently pegged at 3.03%.
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