by vntoknto
3000x series… super popular and highly praised. everyone wants it. 2000 series was terrible so lots of 1000 series owners have sit it out and cant wait to grab the new cards once its released mid September.
nvidia gpus also focus on raytracing and DLSS. neither of which amd has good solution for (since nvidia is the pioneer in this). DLSS is witch craft, able to easily double the FPS in games. it simply makes no more sense to buy amd gpu any more. plus nvidia has better drivers, as always.
and dont forget the Samsung deal. nvidia’s able to reduce price on 3000 series cards due to samsung offering very cheap price, rumor is half of what TSMC offers. this means much higher margins when it reports next earnings. the EPS gonna go through the roof.
cloud gaming is booming. its a new industry that analysts expect to grow to 5 billion industry in just a few years. nvidia is including a 1 year free GFN subscription with 3000 series purchase by the way, in order to further kickstart the cloud gaming business. cloud gaming is bascially video game streaming, like netflix. so if netlifx get crazy valuation even though its only a pure play in streaming, why cant nvidia?
data center business is growing strong. it surpassed gaming revenue for the first time. the AI business will continue to be a secular trend. we’re living increasingly in a digital world. think of all the surveilllence system, what do you think power them to do facial recognization? its the GPUs. china’s been expanding its police state and will only require even more GPUs to do the tasks and the rest of the world will follow too.
once nvidia finish the ARM aquision, it will have CPU capabilities just like intel and amd. and ARM cpus has been growing stronger every year. nvidia, being a new player in the CPU space, gonna compete against intel data center business by releasing cheaper cpus. if AMD stock price is skyrocketing coz people think they gonna take intel’s cake, imagine what gonna happen with nvidia when people realize nvidia poses an even stronger threat to intel than amd does?
also, nvidia has superb software. its CUDA ecosystem is industry standard. its very hard to break away from an ecosystem. CUDA is to AI what microsoft office is to office work. amd and intel are not gonna be able to take its place.
nvidia market cap now is only 300 billion. 1 trillion is totally achievable within 1 year, honestly i wouldnt even be surprised if it achieves 700 billion before the end of 2020, especially with the QE environment we are in right now. it will be the first semiconductor company with 1 trillion valuation and it well deserves it.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.