NVIDIA Corporation’s (NASDAQ:NVDA) new graphics chips is going to lead to the company putting some distance between itself and a key rival. That’s the take from Shrout Research’s Ryan Shrout, who shared his thoughts in a recent opinion piece.
Marketwatch passes along what he had to say about Nvidia.
Most agree that Nvidia had a lead in the graphics space from both a market and technology view. The launch of the GeForce RTX chips increases that even more, putting Nvidia in the driver’s seat for the foreseeable future.
This leaves AMD in a tough spot. Its current GPUs do not support acceleration engines for either ray tracing or artificial intelligence, leaving it a full step behind the capability that Nvidia can offer to gamers today. Though game developers are unlikely to lock any game titles behind a requirement for ray tracing, the more instances of games that integrate this added capability can create a rolling tide, putting more pressure on AMD to react.
Shrout notes that there are no plans for AMD to refresh its consumer product line this year. As he sees it, that means Nvidia is poised to maintain a significant edge well into next year.
NVIDIA Corporation shares were trading at $262.75 per share on Wednesday afternoon, up $9.43 (+3.72%). Year-to-date, NVDA has gained 35.96%, versus a 8.25% rise in the benchmark S&P 500 index during the same period.