When NVIDIA (NASDAQ: NVDA) announced a refresh to its graphics cards (GPUs), news that retailers had sold out of the 30xx series botched the launch. Bots that automatically bought the GPU once available prevented consumers from ordering one. Limited supplies also hurt the launch day sales volumes.
After trading flat on the week, Nvidia’s stock could trend lower alongside the decline in the NASDAQ index. The index fell 1.32% on the week.
Heightened volatility may create a better opportunity for tech investors to buy Nvidia at better prices. Expect the firm to resolve volume issues by mid-October. By then, rival Advanced Micro Devices (NASDAQ:AMD) will launch an RDNA2 refreshed GPU to keep up with Nvidia. AMD will not likely have a product that matches Nvidia’s performance. Still, it may compete by selling an affordable mainstream GPU to the masses.
Nvidia will still enjoy the high-end gaming market with its $800 GPU. Gamers will still look at the RTX 3080 as a great deal compared to the 2080-series. The performance is vastly improved at the same price. But if AMD launches a cheaper card, Nvidia will cut prices, spurring sales. Ultimately, both firms will benefit as competition heats up. Consumers will benefit the most as will shareholders, as sales grow.
