Nvidia Introduces Next-Gen Graphics Chips

by | Aug 17, 2018 | NEWS

Nvidia Corporation (NASDAQ: NVDA) unveiled their next-generation Turing graphics chip Monday at the Siggraph conference in Vancouver, and already the analysts are excited.

The new chip boosts performance over six times more than the previous generation Pascal cards – which were already performing at the top of the industry.

The new Turing chips are the eighth generation graphics chip from Nvidia and are a HUGE leap in technology. Jon Peddie, CEO of analyst firm JPR, said in a press release issued by Nvidia, “This is a significant moment in the history of computer graphics. Nvidia is delivering real-time ray tracing five years before we had thought possible.”

With the ever-growing popularity of super-high-end graphic video games, the development of the chip is a game changer for the company, which already dominates the market.

The chips are expected to hit the market in the fourth quarter of this year, but Nvidia’s stock is already seeing a spike as investors anticipate the changes the new chip will mean to the industry.

While the stock price is up since the announcement, it has been volatile, and some analysts are encouraging investors to buy while others recommend waiting until the company releases its earnings report on Thursday.
The stock opened up five dollars Tuesday morning, after the announcement Monday.

Year-to-date, Nvidia’s stock is up almost $100. And with the new chip, which is set to revolutionize the industry, that price stands to climb much higher.

The new chips should bridge the gap between video games and virtual reality, giving gamers an experience that looks and feel much more real. The video game industry has exploded in recent years, with multi-player games like Fortnight and Overwatch creating massive fan bases and bringing in huge revenues.

The emergence of Esports has created an entirely new revenue source for video game and graphics companies. The new more realistic look which will be possible with Nvidia’s new chips will open up even more possibilities for this growing industry.