When NVidia’s (NVDA) stock dipped from around $260 to the $240 range after its earnings report, traders got the bearish call wrong. NVidia followed its earnings report with the announcement of the GTX graphics card. Not only does this release put an end to cryptomania mis-pricing GTX 1080s but it puts NVidia firmly ahead of AMD (AMD) and Intel (INTC).
More glaring to bears is Citron’s silly tweet saying NVDA stock will fall to $200. The analyst continues to make poor calls on short ideas. The Turing launch at Gamescom created well-earned excitement in the progress of GPUs in the technology space. The new architecture will lead to real-time Ray Tracing but not right away. This may get implemented in games in four or five years’ time. Still, NVidia set a product pathway that game-makers and software developers now have to work with.
Seasonal strength
Max-Q, which enables gaming PC OEMs to fit high-performance GPUs into slim notebooks 20 mm thick, are in OEM and ODMs. Seasonally, the back-to-school sales in the current quarter should give NVidia a boost in revenue growth in the graphics segment. By the holiday season, Max-Q will be in 26 models. With a vibrant gaming industry, thanks to game titles like Fortnight and PUBG, title release from Electronic Arts (EA) – Battlefield 5 – and NVidia’s partnership with Square Enix, NVidia has plenty of upside. As games slowly adapt Turing, sales of GTX 2000-series cards will give the company strong revenue growth for the next few quarters.
