Market Overview

Munster Sees 'Holy Grail' In Nvidia's New GPUs, While Stifel Takes Neutral Stance On Chipmaker

Share:
Munster Sees 'Holy Grail' In Nvidia's New GPUs, While Stifel Takes Neutral Stance On Chipmaker
Related NVDA
Citi Adds Nvidia, Marvell Technology To Holiday Shopping List
Nvidia Bounces Back After News Of Potential SoftBank Sale
Looking Through 2019 To The 2020s; 4 Major Themes (Seeking Alpha)

NVIDIA Corporation (NASDAQ: NVDA) unveiled its GeForce RTX product line Monday. The graphic cards are based on new and advanced Turing architecture, which creates realistic lighting and shadows.

The products are the “holy grail of computer graphics,” Loup Ventures founder Gene Munster said in a Tuesday post. Stifel analyst Kevin E. Cassidy maintained a Hold rating and $250 price target.

The Thesis

The release is a significant upgrade from Nvidia's current PC gaming and graphics processing unit, Cassidy said in the initiation note. (See the analyst's track record here.) 

“As a derivative to this new era of graphics, investors should notice that the DRAM requirement is GDDR6 DRAM rather than GDDR5 DRAM in the previous GPU generation,” the analyst said. “In our view, this demonstrates that DRAM are no longer simple commodity devices but essential components for driving new features and overall system performance.”

Nvidia worked closely with numerous game developers on creating content that will demonstrate the increased GPU features, Cassidy said. 

“The company announced 11 initial games that would enable real-time ray tracing with more releases expected to follow. Additionally, Nvidia announced 16 games that would support Deep Learning Super-Sampling  or the ability to use deep learning to enhance the edges of rendered objects and improve lower quality graphics."

Nvidia's valuation is keeping Stifel on the sidelines, Cassidy said. 

Munster Finds 3 Catalysts In GPU Lineup 

Nvidia advancements represent a giant step toward the future of gaming, said Loup Ventures' Munster.

“Hardware and software innovations will increasingly save developers time and money and will improve the gaming experience,” the sell-side analyst-turned-venture capitalist said. 

Munster highlighted three key catalysts in the new product line: 

  • The RTX line adds real-time ray tracing, which provides a more realistic gameplay.
  • A rise in AI image processing will revamp computer graphics and add super resolution.
  • Real-time ray tracing will make virtual reality experiences more lifelike and immersive.

Price Action

Nvidia shares were up 1.5 percent at $251.56 at the time of publication Tuesday. 

Related Links: 

What Wall Street Thinks Of Nvidia's Q2 Earnings

Morgan Stanley Sees Buying Opportunity In Nvidia: 'Clarity Likely After Next Week's Product Launches'

Latest Ratings for NVDA

DateFirmActionFromTo
Dec 2018RBC CapitalMaintainsOutperformOutperform
Nov 2018Credit SuisseInitiates Coverage OnOutperform
Nov 2018Exane BNP ParibasDowngradesNeutralUnderperform

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

Posted-In: GeForce RTX Gene MunsterAnalyst Color Price Target Initiation Top Stories Analyst Ratings Tech Best of Benzinga

 

Related Articles (NVDA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DESPKeyBancInitiates Coverage On0.0
MELIKeyBancInitiates Coverage On0.0
ALBKeyBancMaintains120.0
AVNSKeyBancMaintains67.0
ABTCredit SuisseInitiates Coverage On82.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

The Good And Bad Of Russia ETFs

Toll Brother's Solid Q3 Results Puts Homebuilders On Strong Foundation