Market Overview

Gaming Survey Shows 'Solid Trends' As PlayStation 5, Xbox Series X Prepare For Launch

Gaming Survey Shows 'Solid Trends' As PlayStation 5, Xbox Series X Prepare For Launch

Video games are on the rise thanks in part to stay-at-home procedures during the coronavirus (COVID-19) outbreak. PC gaming is up, with Etailers reporting "frequent recent stocks outs of NVDA's most popular Turing cards."

According to analysts at BofA Securities, only "8% of PC gamers own a GPU on par with performance of upcoming Sony/Microsoft game consoles, which will become the new bar for mainstream performance."

The approaching releases of Sony Interactive Entertainment's (NYSE: SNE) PlayStation 5 and Microsoft Corporation's (NASDAQ: MSFT) Xbox Series X could ignite a "major upgrade cycle" for PC gaming-based companies like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).

See Also: What Sony Analysts Like About The PlayStation 5 Presentation

Demand > Supply: Demand will inevitably grow as mainstream consoles begin releasing hardware updates. BofA analysts believe "Turing adoption could be increasing as a result of the rising popularity of gaming as many are confined to their homes."

Many places like Amazon (NASDAQ: AMZN) are seeing Nvidia products such as the GTX 1650 Turing card sell out.

"In our estimate, just 8.4% of NVDA steam users are using graphics cards with specs on par with the forthcoming Xbox Series X and PS5 game consoles which should become the baseline for AAA PC game performance/development upon their launch in the 2H of this year," analyst Vivek Arya wrote in a note.

"We define this threshold as equal to or above NVDA's RTX 2060 Super Turing card. This implies 90%+ of the installed base could become strongly motivated to upgrade to higher ASP current-gen Turing products, and potentially next-gen 7nm Ampere products, once new game consoles launch later this year."

Latest Ratings for AMD

Jul 2020JP MorganMaintainsNeutral
Jul 2020Piper SandlerMaintainsOverweight
Jul 2020UBSMaintainsNeutral

View More Analyst Ratings for AMD
View the Latest Analyst Ratings


Related Articles (NVDA + AMD)

View Comments and Join the Discussion!

Posted-In: BofA Securities Coronavirus eSports gaming PlayStation 5Analyst Color Analyst Ratings Tech Best of Benzinga

Latest Ratings

ZTSTruist SecuritiesMaintains160.0
WLKTruist SecuritiesMaintains60.0
UNVRTruist SecuritiesMaintains21.0
TRIPTruist SecuritiesMaintains25.0
TTDTruist SecuritiesMaintains450.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at