After watching the notable launch of the Nvidia (NVDA) second-gen RTX GPU, I waited for an article on Seeking Alpha reflecting the importance of this event for Nvidia and its stock. Instead, the most recent article takes a pro-AMD (AMD) narrative. While I am a fan of AMD, I nonetheless see this launch as highly bullish for Nvidia and would like to present to readers a counterpoint – that this is primarily good news for NVDA investors. This article is primarily about NVDA, but let me not dismiss AMD whilst writing. AMD is a legitimate competitor to Nvidia and should not be dismissed. Most Nvidia competitors are in the business of copying Nvidia’s technological progress, selling later and cheaper. AMD, in contrast, is quite similar to Nvidia in its R&D department in that it attempts novel designs, taking risks in the marketplace. AMD is not a laggard nor a copier and is a strong company on its own – well worth an investment. Positioned for Riding the Wave That out of the way, let us discuss Nvidia (somewhat) in a vacuum. This is a company that has not only been on the forefront of GPU tech for decades but is one of the few tech companies positioned for the significant transition in the entertainment industry, away from passive entertainment (e.g., film) and into the growing field of video games. This is an industry set to grow by 25% in the next three years. In the Nvidia’s GeForce RTX 30 Series launch video, CEO Jensen Huang himself admits that the company is riding this market wave: “It is the gamers and their insatiable demand that is the driving force of the GPU.” The company is clearly aware of the end-users’ issues with modern gaming and is positioning its products to solve these problems to where competitors have no solutions. One issue tackled is discussed in minute five of the video (see below). NVIDIA GeForce RTX 30 Series | Official Launch Event [4K] Latency. This is a huge issue for online gaming, especially in esports, a field of gaming engaged in by 75% of Nvidia’s gaming base, according to Huang. Pushing latency asymptotically down to zero will not only solve a huge issue in competitive esports but also make overall gaming smoother for any online players. The Latency Issue Nearly Solved This is what Nvidia claims to be offering with its newest GPU. But a reduction in latency via GPU alone is impossible. A common misconception is that a better GPU only produces a smoother gaming experience. This is not true, as lag can be generated anywhere between your mouse movement to your monitor display. If Nvidia were focused merely on creating the highest quality GPU, they could do so, blaming mouse and monitor (and every component in between) for sub-par gaming experiences. (Source: Nvidia) This is why it is encouraging to hear that Nvidia is working with the manufacturers of other computer components in this endeavor. Clearly, they have the end-user
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