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NVIDIA Unpacks GeForce RTX 2060 At CES To Woo Gamers

Published 01/08/2019, 03:52 AM
Updated 10/23/2024, 11:45 AM
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NVIDIA (NASDAQ:NVDA) and other tech companies are in focus this week with the Customer Electronics Show (CES) 2019 running through this Friday. CES is a Las Vegas-based annual technology tradeshow conducted by the Consumer Technology Association annually in January.

At the event, NVIDIA unveiled its latest gaming GPU, GeForce RTX 2060, based on its Turing architecture. Priced at $349, RTX 2060 boasts ray tracing and AI capabilities.

Although it has features, previously available only in high-end gaming GPUs, it is lower-priced compared to the same. Notably, the other Turing-based gaming GPUs, such as RTX 2080 Ti, 2080 and 2070, starts at $999, $699 and $499, respectively.

NVIDIA believes that RTX 2060 capability to support 5 gigarays per second of ray-tracing (existing RTX GPUs support between 6 and 10 gigarays per second) is enough to offer an encouraging experience for leading gamers.

Moreover, NVIDIA claims that the RTX 2060 will outperform its predecessor, the GTX 1060, which is based on Pascal architecture. The company asserts that it is 60% faster than the GTX 1060, and is also likely to beat the GTX 1070 Ti. However, performance comes with a high price tag as the RTX 2060 is 40% more expensive than the GTX 1060.

Nonetheless, to make it more appealing, the company announced that with the purchase of RTX 2060 or RTX 2070, buyers will receive a free game — either Anthem (NYSE:ANTM) or Battlefield V. With the purchase of a GeForce RTX 2080, both games will be available.

The company also unveiled an array of gaming laptops based on GeForce RTX technology with more than 40 models from various manufacturers to be available on Jan 29.

Impetus to Higher Gaming Revenues

The tradeshow is highly important for the chipmaker, given the current pessimism it is hounded with. We note that in the last reported quarter, the top line took a beating due to weak crypto-related demand.

NVIDIA was overly optimistic that demand for its GPUs will shift from miners to gamers, which will boost the gaming business revenues and offset the revenue loss from miners. As a result, the company continued with its production of GeForce graphics cards. However, drawing proof from its last result, this has not been the case. The lower-than-expected top and bottom-line third-quarter fiscal 2019 results left the company tremendously stressed.

However, we have seen the company’s strong line-up of advanced graphics cards making it a favorite graphics card provider among PC makers.

We feel that robust demand for PC gaming will be a tailwind to the company’s financial performance. It has always generated substantial revenues from its cards because of significantly higher functionality.

The company believes that the latest gaming GPUs will help it drive additional revenues. The new product menu is therefore expected to help the company re-instill investor confidence.

Zacks Rank and Stocks to Consider

Currently, NVIDIA has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc. (NASDAQ:SNPS) , eGain (NASDAQ:EGAN) and Verint Systems Inc. (NASDAQ:VRNT) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for both Synopsys and Verint is projected to be 10% while the same for eGain stands at 30%.

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eGain Corporation (EGAN): Free Stock Analysis Report

Verint Systems Inc. (VRNT): Free Stock Analysis Report

Synopsys, Inc. (SNPS): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

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