NVIDIA launches mid-range Turing GPUs
In the earlier parts of the series, we saw that NVIDIA (NVDA) addressed the issue of excess GPU (graphics processing unit) inventory by stalling shipments of mid-range Pascal GPUs for a quarter. It’s now trying to address the slow uptake of its pricier Turing-based GPUs by launching them at mid-range price points.
NVIDIA brought its ray tracing feature to the mid-range segment with the launch of its Turing-based GeForce RTX 2060 priced at $349 on January 15. In February, NVIDIA introduced a new mid-range 12-nm (nanometer) GeForce GTX 1660 Ti GPU at the price point of $279. This is NVIDIA’s first Turing-based GPU that comes without real-time ray tracing and artificial intelligence capabilities. The GTX 1660 Ti sits between the Pascal-based GTX 1060 and Turing-based RTX 2060 in terms of price and performance. TechRadar reported rumors that NVIDIA will soon launch the laptop version of GTX 1660 Ti.
NVIDIA expects the new mid-range GPUs to boost its gaming revenue and compete with Advanced Micro Devices (AMD), which offers a better price-to-performance ratio. More and more real-time ray tracing supported games are coming up like Unreal Engine, Unity Battlefield 5, and Metro Exodus. The increasing availability of such games will likely drive the adoption of NVIDIA’s high-end GeForce RTX GPUs.
AMD competes with NVIDIA in high-end GPU space
While NVIDIA is tapping the mid-range market, AMD is eyeing the high-end market. AMD launched its high-end Radeon VII GPU built on TSMC’s (TSM) 7-nm (nanometer) node in February and priced it at $699. This GPU matches the performance of NVIDIA’s latest RTX 2080 but lacks ray tracing and artificial intelligence capabilities offered by the latter. AMD is working on ray tracing technology and will launch it in future GPUs.
NVIDIA expects the growing adoption of Turing GPUs and increasing sales of gaming notebooks to drive its gaming revenue in full-year fiscal 2020. However, the full-year fiscal 2020 gaming revenue could be slightly lower than last year due to the absence of crypto demand. Next, we will look at NVIDIA’s data center business.
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