Traders Blog

NVIDIA’s RTX 2080: future gaming?
27/08/2018

Traders of CFDs on NVIDIA’s shares (NVDA.US) have been studying reactions since last week to the company’s announcement of its latest line of graphics cards, the GeForce RTX 2080.

At the same time and despite an initial negative reaction to the company’s latest earnings report, NVDA has made significant gains in the second half of August so far. Having reached a low of about two months in the aftermath of the earnings release on the 16th, the stock bounced to close at $272.40 on Friday night in New York, just shy of all-time highs.

New flagship gaming hardware tends to generate a lot of debate online, and the RTX has been no different. The official announcement of the RTX Turing GPUs last Monday just before Gamescom was huge for high-end gamers, and the performance figures coming out not long afterwards suggested that the excitement wasn’t for nothing.

Indications from NVIDIA that Turing GPUs will be at least 30% faster than the best current cards added to the hype generated at the announcement. NVIDIA’s CEO Jensen Huang called the Turing architecture the ‘most important since 2006’s Tesla GPU architecture and the introduction of CUDA’. Then you have one of the key innovations of this new generation: hybrid raytracing rendering.

Unveiling RTX 2080 series

The raytracing developed by NVIDIA is called RTX, and from this the line of GPUs, and the company claims it will allow developers of games to produce almost lifelike illuminations, shadows and reflections in their games. It’s not all theoretical, either – several major upcoming games will support RTX, from Battlefield V to the hotly anticipated Metro Exodus.

It’s ahead of its time, and some gamers have been arguing by too much. Many have noted last weekend that however amazing the hardware might be, ray-tracing is going to be a very niche market for the foreseeable future. As of now, no consoles have this kind of functionality, and the RTX line of GPUs will be the first to achieve it on the PC.

You could ask what the point of ray-tracing is if the market for it is currently so small, but on the other hand it’s likely to grow sooner or later. When games featuring ray-tracing heavily start arriving, current cards are going to be far too slow to handle them – that’s usually how it goes with GPUs, anyway.

The general excitement of hardcore gamers appears to have been shared by traders: NVDA made strong gains of over $30 last week, rebounding from losses after the company’s latest earnings report. These came despite the result beating the forecast.

The key date awaited by gamers and traders alike is 14 September, set by NVIDIA for full reviews of the new RTX series. General release is expected on 20 September, so reaction from individual buyers is also likely to be watched then.

Analysts have suggested that the outlook for NVIDIA’s sales remains very good going forward, with every indication that the company’s good performance in the upgrade cycle will continue. Equally buzz online over this upcoming release has been overall highly positive.

While only time will tell how well the RTX series works in practice, we reckon that NVDA’s definitely a stock to watch next month.

 

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