Nvidia (NASDAQ:NVDA) announced a refresh to its RTX GeForce cards ahead of Advanced Micro Devices (NASDAQ:AMD) and pretty much stole AMD’s thunder. Though consumers win out in the end with the head-to-head competition, what does it mean for tech investors?
Nvidia will launch a GeForce 2060 Super for $399, RTX 2070 Super for $499, and RTX 2080 Super for $699. The competitive move forced AMD to cut prices of the Navi GPU ahead of the launch. AMD Radeon 5700 GPUs will fall as much as $50. Though it is at a higher price point, Nvidia appears to have the technical edge with better performing Super cards. It needs to maintain, if not grow, its market share after a slowdown in crypto mining and weaker game sales hurt demand in the last few quarters.
Nvidia suffered from a glut in unsold inventory late last year and entering 2019. Inventory levels are dropping as RTX sales pick up. But the RTX Super GPU release should continue driving sales volume.
AMD’s Navi launch should have brought market share gains for AMD. Prior to Navi, AMD only had Radeon 7, Vega, and slower RX-series cards. And ahead of the launch, it now must cut prices. This could lead to break-even profits at launch. AMD will need sales volumes picking up to realize operating efficiencies.
Your Takeaway
AMD and Nvidia are both compelling investments for tech investors. Nvidia offers better
