Nvidia will unveil Lovelace gaming cards at a starting price of 9

Nvidia will unveil Lovelace gaming cards at a starting price of $899

Nvidia Corp. revealed its next-generation chip architecture on Tuesday during the keynote address at its GPU Technology Conference, but the chipmaker has a tougher market than it did two years ago when it introduced its new line of gaming chips.

In his keynote address, Nvidia NVDA,
-1.02%
CEO Jensen Huang unveiled gaming chips using the chipmaker’s next-generation “Lovelace” architecture by introducing its flagship RTX 4090 chip at a suggested retail price of $1,599.

The new architecture is named after the 19th century English mathematician Ada Lovelace, who is generally considered to be the world’s first computer programmer for her work on Charles Babbage’s theoretical Analytical Engine.

The new gaming chip, which is said to perform up to four times faster than its previous generation RTX 3090 Ti, will be available on October 12.

Huang also introduced the RTX 4080 starting at $899, which was meant to run up to four times faster than the RTX 3080 Ti, with a 16 GB version starting at $1,199.

Huang said the RTX 3000 series will still be available to mainstream gamers with the RTX 3060 starting at $329.

Before the event, however, Nvidia had to take a $1.22 billion inventory charge as it tried to clear out old inventory before launch.

Read: Nvidia’s sales forecast falls about $1 billion short of expectations, the stock falls

Lovelace’s architecture succeeds Ampere, which was unveiled about two months into the COVID-19 pandemic amid strong demand for gaming cards that sent the stock to a 122% gain in 2020, compared to a 51% gain on the PHLX SOX Semiconductor Index,
-1.45%.

Now, Nvidia is launching into an environment where gaming demand is falling during a consumer tech downturn, and the stock has fallen 55% year to date, compared to a 35% decline in the SOX index.

The Lovelace GPU company also launched for designers and creators, RTX 6000 workstation, which will start shipping in the fourth quarter.

Read: Chip stocks could fall another 25% as ‘we’re entering worst semiconductor downturn in a decade,’ says analyst

Huang also unveiled Nvidia Omniverse Cloud, the company’s first Software-as-a-Service and Infrastructure-as-a-Service product, for designing, publishing, operating and experiencing meta applications, the company said.

The service includes features like “Omniverse Nucleus Cloud” that provides designers and 3-D teams the ability to make changes and share scenes from virtually anywhere, Nvidia said.

Read: Nvidia’s ‘China Syndrome’: Is the stock melting?

Early Omniverse Cloud customers include advertising agency WPP WPP,
-0.05%

WPP,
+1.10%
and Siemens SIE,
-1.61%,
Nvidia said.

As consumer demand declines, Nvidia’s largest unit recently became its data center business with a quarterly revenue contribution of $3.81 billion, a 61% year-over-year gain, compared to a 33% drop in gaming sales to $2.04 billion from a year ago, according to. the company’s latest earnings report.

Nvidia shares rose less than 1% in trading on Tuesday, compared with a less than 1% decline in the S&P 500 index SPX,
-1.28%.

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