Jensen Huang Unveils Monster GPUs: Nvidia's RTX 5000 Series Starting At $549
Tuesday, Jan 7, 2025 11:13 am ET
3min read Nvidia CEO Jensen Huang took the stage at CES 2024 to unveil the latest addition to the company's GPU lineup, the RTX 5000 series. The new series, starting at $549, is set to shake up the gaming, data center, and AI markets, with improved performance and features that could drive demand and boost Nvidia's stock performance.
The RTX 5000 series includes the RTX 5080, RTX 5090, and the flagship RTX 5090 Ti, offering enhanced capabilities such as DLSS 3 and ray tracing. These features are expected to drive demand in the gaming market, as seen in the 39.2% year-over-year increase in GPU shipments in Q1 2024 (JPR). In the data center and AI markets, the RTX 5000 series' enhanced capabilities could attract more customers, given Nvidia's dominance in AI hardware.
Nvidia's new GPUs are expected to drive revenue growth and earnings in the short and long term. The H200, a successor to the A100, has already been favored by companies like Meta and Microsoft for generative AI programs. As AI continues to grow, demand for these high-performance GPUs will likely increase, boosting Nvidia's data center revenue. In the long term, the new Blackwell architecture, set to launch in late 2024, is expected to further enhance Nvidia's lead in AI hardware, potentially opening new markets and driving sustained growth.
However, Nvidia faces competition from other companies looking to develop in-house chips to diversify supply lines and become less reliant on one source for AI chips. Microsoft, Google, and Amazon are among the tech giants exploring this option. Additionally, U.S.-China tensions pose a threat to Nvidia's future growth, as export controls could impact the company's financials.
In conclusion, Nvidia's RTX 5000 series is poised to drive demand and boost the company's stock performance in the gaming, data center, and AI markets. However, competition and geopolitical tensions present challenges that Nvidia must navigate to maintain its lead in the AI hardware market. As Nvidia continues to innovate and adapt, investors will be watching closely to see if the company can join the trillion-dollar stock club.
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