Shares of chipmaker Nvidia saw celebratory gains after announcing its next-generation graphic chips called Turing graphics.
It’s been two years of waiting for the company to announce the new graphic chips, which were revealed at a conference in Vancouver.
The company’s CEO Jensen Huang stated, “Turing is NVIDIA’s most important innovation in computer graphics in more than a decade.”
According to the company, Quadro professional workstation graphics cards with Turing technology will be available in the fourth quarter.
“Turing is NVIDIA’s most important innovation in computer graphics in more than a decade,” Nvidia CEO and founder Jensen Huang said at the SIGGRAPH conference/
“Hybrid rendering will change the industry, opening up amazing possibilities that enhance our lives with more beautiful designs, richer entertainment and more interactive experiences. The arrival of real-time ray tracing is the Holy Grail of our industry.”
Raymond James analyst Chris Caso remarked, “NVIDIA launched the Quadro RTX line of workstation cards, featuring the new Turing GPU core. Compared to Pascal, Turing is 1.7x larger in terms of size / transistors.”
He added, “Utterly Awesome — NVDA Announces Turing GPU” Monday. “While GeForce gaming cards were not launched Monday night, we do expect gaming cards featuring Turing to be launched shortly. … We expect the new gaming product cycle to be a catalyst for NVIDIA’s stock in 2H18.”
The analyst has an “outperform” rating on the stock and a $300 price target.
According to Cowen analyst Matthew Ramsay, Nvidia’s shares will rise in the coming year due to strong sales from its new graphics chips.
Cowen reiterated its outperform rating for Nvidia’s stock.
“We see a favorable setup as we expect well-documented choppiness in the gaming channel to be offset by continued robust datacenter demand and backlog. We see little risk to near-term numbers from crypto,” said Ramsay.
Cowen is “adding NVIDIA to our Top Picks into the Turing gaming cycle.”
“We would recommend investors not let any choppiness in a clearly transitional period distract from what we expect to be a powerful upgrade cycle when Turing [next generation chip] launches this Fall,” Ramsay also said.
Ramsay reiterated his 12-month $325 price target on shares.