What about Rumors That Nvidia Is Launching a Gaming GPU?



Rumors on next-generation GPUs

Nvidia (NVDA) stock has been gaining momentum on rumors of the launch of a gaming GPU (graphics processing unit). On Thursday, July 5, Nvidia stock ended 2.5% higher at $242.73 as rumors of Nvidia’s highly anticipated GeForce GPU line began to heat up.

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Rumored reports

The rumors were supported by a report from Verge on Monday that the next-generation gaming GPUs, rumored to be called the GeForce GTX 11 Series, might launch in August. The rollout of the GeForce GTX 1180 would add to the current generation of the GeForce gaming line, which was launched more than two years ago.

Recent activities, including Nvidia’s invitation for a mysterious PC-related event and a Lenovo product manager talking about the GTX 11 Series signals that an update is going to come soon.

Then last week, an image of an alleged engineering sample of a GTX 1180 was leaked. It had dozens of installed GDDR6 memory modules from Micron (MU). Micron has started producing the bulk of GDDR6, which will be better than the existing GDDR5 memory and should improve the bandwidth capabilities of next-generation GPUs across PCs and consoles.

On Thursday, there were more reports that Nvidia is ready for the launch and has been stockpiling about a million next-generation GeForce graphics cards to meet the demand for a third-quarter or fourth-quarter launch.

Gaming revenues

Nvidia’s gaming business has evolved over time and has been one of the critical drivers of its revenues. Nvidia has been providing Pascal architecture-based GPUs for better visualization and speed needed for a thrilling gaming experience. Advanced Micro Devices (AMD) is also growing in the gaming market but still lags behind Nvidia since its Vega GPUs are not competitive with Nvidia’s gaming GPUs.

Nvidia holds a leadership position in the gaming space and earns more than 50% of its revenue from it. In its fiscal Q1 2019 results, Nvidia reported total gaming revenues of $1.72 billion, which is 67% higher than fiscal Q1 2018. The company’s gaming revenue grew at an average annual rate of 40% between 2016 and 2018.


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