On Tuesday, semiconductor giant Nvidia (NASDAQ:NVDA) revealed a new gaming graphics chip (GPU) codenamed Ada Lovelace, which will power its GeForce RTX 4080 and GeForce RTX 4090 series of GPUs (expected to launch later this year). The new graphics chip design is expected to create more realistic images in games.
Nvidia claims that, at best, the RTX 40 series of cards is two times more efficient than its last-generation products. Also, AI-backed software improvements enhance gaming performance as new frames are created at lightning speed.
However, it is still some time before we can surely tell how the cards will do in the real world.
How Much Will the RTX 4090 Cost?
The price of the cards is another point to ponder. The top-model RTX 4090 is slated to release on October 12 with a price tag of $1,599.
Two other versions will hit the market in November and will retail for $899 and $1,199.
The question about how much demand the flagship cards will pull when the economy is in the thick of an uncertain, inflation-ridden year remains. Moreover, whether the price of the cards can spur demand at a time when there is an oversupply of graphics cards in the market, is also something that remains to be seen.
What Analysts Are Saying
After the announcement of the RTX 40 series, Oppenheimer analyst Rick Schafer expressed his optimism about the upcoming launches of the cards. He believes that Nvidia’s gaming segment is de-risked with the announcement.
Schafer does acknowledge that there are potential risks to the company’s data center business, but also believes that the headwinds are passing clouds. The analyst is strongly bullish on the company’s focus on AI-led structural growth.
The analyst maintained his Buy rating and $250 price target on the NVDA stock, based on these insights.
What is the Prediction for NVDA Stock?
Wall Street gives NVDA a Moderate Buy consensus rating based on 23 Buys and nine Holds. Nvidia’s price target stands at $206.39, indicating that it can climb 57% from current price levels.
