Nvidia (NASDAQ:NVDA) may have disappointed shareholders on promising revenue growth through its RTX graphics card launch last year but its mainstream product launch may make up for that. Recognizing that RTX slows frame rates and does not add much to the gaming experience, the GTX 1660 Ti could help sales this year.
Nvidia stock, which was once near $300, sits in the $130 - $165 trading range and a P/E of 22 times. Near-term results will suffer from working through inventory. The last-generation GTX cards are now at a steep discount but not far off from the GTX 1660 Ti pricing. AMD (AMD) is also working through GPU supply.
AMD wowed the market with Radeon 7 but its high price targets the RTX 2080 market which is small. AMD does not have a mainstream card that will compete with Nvidia’s GTX 1660 Ti just yet. Navi will not be released until mid-year. With at least three months of lead for Nvidia, this could prove costly for AMD.
In the end, PC gamers will benefit if Nvidia and AMD fight for market share. That battle is in the mid-range GPU market where prices are more affordable. And with Nvidia in the lead, AMD cannot afford to delay Navi’s release.
